Abstract

The potential Pareto improvement criterion and other measures of economic efficiency do not pass the test of consistency and coherence within economic theory, nor do such measures accord with what public decision makers seek in policy advice from economists. Such efficiency measures are, nonetheless, durable components of the ideology of economics in general, and benefit-cost analysis in particular. The objectivity of the policy scientist has been confused with the objectivity of the science. While economic efficiency has no claim to objectivity, the policy scientist can be an objective analyst of policy choices.

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