Files
Abstract
Pareto welfare criterion based only on people’s willingness to pay
for the project’s output is regarded by many as being a narrow interpretation
of an improvement in social well-being. A broader opinion is that
even though poorer individuals may be less able to pay for a particular
benefit, they may obtain greater utility from it. In line with the broader
opinion, this paper looks at regional welfare weights in India on the basis
of a conventional consumption utility function which assumes diminishing
marginal utility. Estimated parameters are; elasticity of marginal
utility of consumption, and per capita national and regional incomes
which are used in the calculation of welfare weights for 17 states of India.