The Economics of Welfare

The Economics of Welfare analyzes how resources are distributed in a society to maximize overall well-being. It examines how markets and government policies impact different groups, aiming to achieve an efficient allocation of goods and services that benefits most people. The goal is to balance efficiency—producing the right amount of goods—and equity—fair distribution—by addressing issues like market failures, externalities, and public goods. Essentially, it helps us understand how decisions and policies can improve societal happiness and fairness in resource use.