Pigou, Arthur Cecil, – Pensamiento económico. Economistas ingleses – Biografías Economía del bienestar. Asignación de recursos. Economía. Download Citation on ResearchGate | Pigou, Arthur Cecil (–) | A.C. Pigou was born at Ryde, LA ECONOMIA DEL BIENESTAR / A.C. PIGOU ; TR. Pigou es considerado el fundador de la Economía del Bienestar y principal precursor del movimiento ecologista al establecer la distinción entre costes.
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It is also much more relevant than the other when we are considering how much a country is able to provide over a limited number of years for the conduct of a war; because, for this purpose, we want to know what is the utmost amount that can be squeezed out and “consumed,” and we do not premise that capital must be maintained intact. But there is a third and even more serious difficulty. I mean that, given those objective constituents, the size of the dividend should depend on them alone, and not at all on the state of people’s tastes.
This decides its choice of essential form. If is less than unity by a large fraction, this means that, were our group to purchase in the second year a collection of the form C 1its purchases of each item would be less by a large percentage than they were in the first year, and therefore—tastes and distribution being unchanged—it would probably enjoy an amount of satisfaction less than in the first year by a large amount, say by K 1.
Here again we can only speak of an increase or decrease in the size of the dividend from the point of view of period I.
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In the science of biology the fruit-bearing aspect is more prominent. A like inference, it would seem, may be drawn, though with less confidence, when one fraction differs from unity in only a slightly greater proportion than the other.
Thus, during the later nineteenth century, the dominant factor in the Englishman’s increased capacity to obtain almost every important commodity was one and the same, namely, improved transport; for a main part of what improvements in manufacture accomplished was to cheapen means of transport. These things are most conveniently described as goods—whether immediately perishable or durable—and services, it being, of course, understood that a service that has already been counted in the form of the piano or loaf of bread, which it has helped to make, must not be counted again in its own right as a service.
This is not only not necessary, but, in the special case of a dividend consisting of one sort of commodity only, it would even lead to paradoxical results. There is a celebrated, if somewhat too strenuous, passage in Macaulay’s Essay on History: If our group in the second period purchased the several commodities in the same proportion in which it purchased them in the first period, that is to say, if it purchased in both periods a collection of the general form C 1its purchase of each commodity in the second period would be equal to its purchase of each commodity in the first period multiplied by the fraction.
Thus the incomes constituted by old-age pensions and special war pensions must be excluded; though ordinary civil service pensions are properly included, “because these may be said to be equivalent to salaries, and the pension system is only an alternative to paying a higher salary to those rendering existing services and leaving them to look after their own superannuation allowance. The study of a part of things, he points out, cannot in any circumstances be expected to yield more than approximate results: This is the framework within which our construction must be made.
In the British Census of production of this form of double counting was carefully avoided. The latter, therefore, seems on Edition: The corpuscular theory of biendstar is, hitherto, a bearer of light alone.
Arthur Cecil Pigou
Pigou had strong principles, and these gave him some problems in World War I. The fact we have to face is that, in some measure, it is open to the community to choose between these two sorts of men, and that, by concentrating its effort upon the economic welfare embodied in the second, it may unconsciously sacrifice the non-economic welfare embodied in the first. A good sample collection should contain representatives pihou all the groups with different characteristics that aryhur into the national dividend, or of that part of it which we are trying to measure.
To this general conclusion, however, there is one very important exception. To this end an ppigou preliminary is to form clear ideas as to what precisely changes in the size of the dividend mean.
He was a foreign honorary member of the American Academy of Arts and Sciencesa foreign member of the Accademia dei Linceiand an honorary resident of the International Economic Committee. The fact that, instead of doing this, it purchases in the second year a collection of the form C 2 proves that the satisfaction yielded by its purchase of this collection in the second year does not fall short of that yielded by its purchase of the other collection in the first year by more than K 1.
At one end of the scale stands the most general science of all, metaphysics, the science of reality. There is one further consideration, of the great importance of which recent events can leave no doubt.
When we have ascertained the effect of any cause on economic welfare, we may, unless, of course, there is specific evidence to the contrary, regard this effect as probably equivalent in direction, though not in magnitude, to the effect on total welfare; and, when we have ascertained that the effect of one cause is more favourable than pitou of another cause to economic welfare, we may, on the same terms, conclude that the effect of this cause on total welfare is probably more favourable.
When a capital stock deteriorates, e. Welfare, however, is a thing of very wide range. Keynes writes, “legitimately be influenced by pivou of algebraical elegance, of arithmetical simplicity, of labour-saving, and of internal consistency between different occasions of using a particular system of short-hand.
But it cannot be bieneetar in practice because, in order to construct it, a great deal of information eclnomia be necessary which is never in fact available. Injury to economic welfare may need to be accepted for the sake of defensive strategy. Since, therefore, in view of the largeness of K 1 relatively to K 2there are more ways in which the satisfaction from the second year’s purchase can be less, than there are ways in which it can be more, than the satisfaction from the first year’s purchase, and since, further, the probability of any one of these different ways is prima facie equal to that of any other, it is probable that the satisfaction from the second year’s purchase is less than that from the first year’s.
A Cambridge Alumni Database. Our approximate measure will, therefore, also be built up of two parts constituting approximations to the price changes of C 1 and of C 2 respectively.
Thus, if a man marries his housekeeper or his cook, the national dividend is diminished. According to the definition of the last chapter, the national dividend will change in one way from the point of view of a period in which tastes and distribution are of one sort, and in a different way from that of a period in which they are of another sort.
It is in their fundamental aspect as an organon of laws, and not in their superficial aspect as a arthut of facts, that the realistic sciences have bearing upon the conduct of affairs.
When it is recollected that all comparisons between different taxes and different monopolies, which proceed by an analysis of their effects upon consumer’s surplus, tacitly assume that demand price the money measure of desire is also the money measure of satisfaction, it is apparent that it may have great practical importance also. The answer which first suggests itself is that those goods and services should be included double-counting, of course, being avoidedand only those, that are actually sold for money.
I have done my best, by restricting as far as possible the use of technical terms, by relegating specially abstract discussions to Appendices, and by summarising the main drift of the argument in an Analytical Table of Contents, to beinestar what I have atrhur say as little difficult as may be. It involves the money figure that would be obtained by adding together the consumers’ surpluses, as measured in money, derived from each several sort of commodity contained in the dividend. In order to conform with this, our measure of change would need to be double, being expressed in one figure from the point of view of the first period, and, if tastes and distribution were different in the two periods, in another figure from the point of view of the second period.
Arthur Cecil Pigou,
This is the true net annual income or revenue of the country, or the national dividend. He held the post until CambridgeCambridgeshireEngland. For the present purpose the precise content of capital is immaterial. On the face of things we piogu expect these two sums to be substantially equal, just as we should expect a man’s receipts and his expenditure including investments to be equal.
In other words, this sort of loss, though, of course, it is incompatible with the maintenance of capital intact in any literal sense, is not relevant to estimates of the national dividend.