Foundations of Welfare Economics: Theory and Policy Application

How do we define if an economic outcome is truly better for society as a whole? Welfare economics provides the rigorous framework necessary to answer this critical question. By mastering the foundational concepts of welfare economics, you will gain the analytical skills required to assess the efficiency and equity implications of various economic policies, understanding the limits of collective decision-making. What you'll learn: * Understand the concept of Pareto efficiency and its limitations in real-world policy evaluation. * Analyze compensation principles, including the Kaldor-Hicks and Scitovsky criteria, used to judge potential policy improvements. * Master the theoretical structure of Social Welfare Functions, such as the Bergson model, and the challenges outlined by the Arrow Impossibility Theorem. * Apply foundational welfare concepts to critique and evaluate current economic policy proposals focused on efficiency and equity. * Learn basic modern approaches to measuring social well-being beyond traditional metrics. The course begins with defining key terminology and the core theorems of efficiency, then progresses to exploring the challenges of aggregating individual preferences and applying these models to policy analysis. This course is designed for absolute beginners in economics, as well as students or analysts seeking a focused, theoretical foundation in welfare economics. No prior economic coursework is required. Start building your rigorous framework for policy analysis today.