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WELFARE ECONOMICS

EIB3002 WELFARE ECONOMICS
3 Credits

Pre-requisite None

Learning At the end of the course, students are able to:
Outcomes
1. describe the mechanism of resource allocation in a market economy;
2. discuss the reasons the government intervened in the market economy; and
3. assess project using social cost-benefit analysis.

Synopsis This course will discuss Pareto Optimality Criteria, compensation criteria,
measurement of social welfare changes, consumer surplus, Arrows theorem,
social choice problem and others. Effect on market imperfection of optimality
criteria will be discus in second best theorem, externalities, Coase theorem,
public goods and other.

References 1. R. Boadway & N. Bruce (1984), Welfare Economics ; Oxford: Basil Blackwell
2. Edward M. Gramlich (1990), A guide to Benefit-Cost Analysis; Prentice Hall
3. Ng Yew Kwang (1983), Welfare Economics,rev.ed; London:Macmillan
4. J. Craven (1992), Social Choice, Cambridge: Cambridge University Press
5. J.Bonner(1986), Politics, Economics & Welfare, Brighton : Wheatsheaf.
6. C.M.Price (1977), Welfare Economics in Theory and Practice, London :
Macmillan.

Soft Skills CS1, CS2, CS3

Assessment Continuous Assessment : 40%
Final Examination : 60%

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