This book attempts to make welfare economics more complete by discussing the recent inframarginal analysis of division of labor and by pushing welfare economics from the level of preference to that of happiness, making a reformulation of the foundation of public policy necessary.

About the Author(s)

Yew-Kwang Ng

Yew-Kwang Ng is Personal Chair in Economics, Monash University, Australia.

Table of Contents

Introduction * Pareto Optimality * The Direction of Welfare Change: Welfare Criteria * The Magnitude of Welfare Change: Consumer Surplus * Social Choice * The Optimal Distribution of Income * Externality * Public Goods * First, Second, or Third Best? * Beyond Marginal Analysis: Perspectives from an Inframarginal Analysis of Division of Labour * From Preferences to Happiness * Conclusion: Towards a Complete Study of Welfare?