Efficiency Criteria and the Sen-type Social Welfare Function

Abstract

Most of the Social Welfare Functions available in the literature are Paretian, that is increase in anybody's income in the society is welfare augmenting. The Sen type social welfare function possesses this property as well. However, Paretianity is normative criteria and might not be accepted by everybody. This paper has demonstrated this problem of Paretianity and proposes an alternative Social Welfare Function.Social Welfare Function, Gini Coefficient, Paretianity