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Consider the utilitarian (Benthamite) social welfare function and the Rawlsian social welfare…

by | Sep 9, 2023 | finance

 

  1. Consider the utilitarian (Benthamite) social welfare function and the Rawlsian social welfare function.
    1. Which one is more consistent with a government that redistributes from the rich to the poor? Which is more consistent with a government that does not do any redistribution from the rich to the poor?
    2. Reconsider your answer to part (a). Show that either of the two social welfare functions can still be consistent with government redistribution from the rich to the poor. (Hint: think about the shape of the utility function).

 

  

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