Subject(s): Welfare economics. -- Economic policy. -- Positive and normative economics, Welfare economics, Compensation and equivalent variations, efficiency weightings -- Pareto Optimality and the Pareto criterion : Pure consumption, Production efficiency, Product mixed case, Pareto optimality and competitive equilibrium , First and second optimality theorem, Limitations of Pareto optimality and the Pareto principles -- Compensation principles and the welfare function -- Reversal paradox, Intransitive ranking , Utility possibility curves and the potential welfare criterion , Social welfare function, Policy analysis, General equilibrium and partial equilibrium analysis -- Welfare measurement for the producer : Profit maximizing firm, Welfare measures for the producing firm, profit, Producer surplus and quasirent, relationship of profit, Quasirent and producer surplus, Producer welfare measurement in the input market,, Nonprice benefits, input quality restrictions for the competitive firm, investment and intertemporal welfare measurement -- Alternative measures of producer welfare in factor and product market -- Consumer surplus and consumer welfare -- Notion of consumer surplus, path dependence of consumer surplus, Uniqueness of consumer surplus, Constancy of the marginal utility in income -- Nonuniqueness of consumer surplus -- Willingness to pay and consumer welfare : Willingness to pay measures, Nibble paradox, Equality of compensation and equivalent variation, Graphical analysis of willingness to pay, Consumer surplus as a WTP measure : single price change case, Multiple price change case, Price income change case , Exact measurement of WTP -- Factor supply and factor owner welfare -- Endogenous vs exogenous income, Surplus change as an approximation of WTP, General price change with changes in exogenous income, Imposed quantity changes , -- Aggregation and economic welfare analysis of market-oriented policies -- Aggregation of WTP : producers , Consumers and factor owners; Aggregation of money measures of utility change , Welfare analysis of simple market distortions , Laissez-Faire and government intervention, International trade, Empirical considerations in market level welfare analysis, Choice of market for estimation -- Multimarket analysis and general equilibrium consideration -- Welfare effects in vertically related markets, Vertical sector welfare, Welfare effects in horizontally related markets, General equilibrium welfare management, Welfare measurement with existing distortions in other markets, General equilibrium considerations in specification, estimation and interpretation -- Welfare economics of market structure with applications to international trade -- Simple monopoly model, simple monopsony model, oligopoly and oligopsony, demand and cost conditions, Economies of scale, market intermediaries, Labour unions, Antitrust economics, International trade considerations,Bargaining game theory and welfare economics, Empirical considerations in markets subject to market power -- Welfare economics of information with applications to advertising and information policy -- Role of price exception, Role of quality information, Measuring the welfare effects of partial and misleading information, An example of government delay in disseminating contamination information, Apparent vs actual changes in tastes and preferences, Welfare effects of advertising, Evaluation of public information policy -- Stochastic welfare economics with applications to agricultural policy analysis -- Consumer welfare with random prices and instantaneous adjustment, Producer welfare with random but anticipated prices, additional considerations regarding welfare effects of price , Instability with uncertainty, Welfare measures under risk aversion, market-based estimation ex ante WTP, agricultural price stabilization, Federal crop insurance policy -- nonmarket welfare measurement with applications to environmental economic policy -- Externalities, Social optimality, Public goods, impure public goods, Measurement of external environmental benefits and cost -- Intertemporal considerations in cost benefit analysis with applications to natural resources economics -- Social discount rate, Measuring welfare over time: cost benefit analysis, Intertemporal aspects of the consumer problems, Intertemporal welfare analysis of risky projects and policies , Investing in research and development, Economic welfare analysis of natural resources policy, general framework for dynamics and sustainable economic welfare analysis -- Conclusions and further consideration -- Theoretical and empirical applications, Welfare maximization and cost benefit analysis, Income distribution, making economic welfare analysis useful in the policy process