Measuring Utility

Measuring Utility
Author: Ivan Moscati
Publisher:
Total Pages: 345
Release: 2019
Genre: Business & Economics
ISBN: 0199372764

Utility is a key concept in the economics of individual decision-making. However, utility is not measurable in a straightforward way. As a result, from the very beginning there has been debates about the meaning of utility as well as how to measure it. This book is an innovative investigation of how these arguments changed over time. Measuring Utility reconstructs economists' ideas and discussions about utility measurement from 1870 to 1985, as well as their attempts to measure utility empirically. The book brings into focus the interplay between the evolution of utility analysis, economists' ideas about utility measurement, and their conception of what measurement in general means. It also explores the relationships between the history of utility measurement in economics, the history of the measurement of sensations in psychology, and the history of measurement theory in general. Finally, the book discusses some methodological problems related to utility measurement, such as the epistemological status of the utility concept and its measures. The first part covers the period 1870-1910, and discusses the issue of utility measurement in the theories of Jevons, Menger, Walras and other early utility theorists. Part II deals with the emergence of the notions of ordinal and cardinal utility during the period 1900-1945, and discusses two early attempts to give an empirical content to the notion of utility. Part III focuses on the 1945-1955 debate on utility measurement that was originated by von Neumann and Morgenstern's expected utility theory (EUT). Part IV reconstructs the experimental attempts to measure the utility of money between 1950 and 1985 within the framework provided by EUT. This historical and epistemological overview provides keen insights into current debates about rational choice theory and behavioral economics in the theory of individual decision-making and the philosophy of economics.

Measuring Development

Measuring Development
Author: Asis Kumar Banerjee
Publisher: Springer Nature
Total Pages: 244
Release: 2020-06-24
Genre: Business & Economics
ISBN: 9811561613

This book discusses how to measure the level of development of an economy, particularly, the task of ranking economies in terms of their development. In this context, development is defined as an increase in people’s level of wellbeing. The book emphasises that wellbeing is a multidimensional concept, and that it is important to ask how equitably the fruits of development are distributed, and as such it focuses on multidimensional, inequality-sensitive development ranking. Rather than using various specific development indices, which would lead to different development rankings for a country, the book proposes a dominance approach, which formulates conditions under which two economies can be ranked unambiguously, making it valid for all reasonable development indices. With the help of illustrative examples using real-world data, it demonstrates that such unambiguous rankings are possible, and that the proposed approach can be used to complement traditional approaches. An invaluable resource for researchers working in the field of development, the book will also appeal to practitioners engaged in measuring development. An excerpt from the book's Foreword:"[This book] is a comprehensive and valuable contribution to the literature on the measurement of inequality and the use of such measurement in the assessment of social welfare. I believe that it will be of much interest to researchers working on measures of inequality and social welfare as well as advanced graduate students who are looking for a solid introduction to this important area of normative economics." - Prof. Prasanta K. Pattanaik, University of California, Riverside, California, U.S.A.

Measuring and Valuing Health Benefits for Economic Evaluation

Measuring and Valuing Health Benefits for Economic Evaluation
Author: John Brazier
Publisher: Oxford University Press
Total Pages: 373
Release: 2017
Genre: Business & Economics
ISBN: 0198725922

There are not enough resources in health care systems around the world to fund all technically feasible and potentially beneficial health care interventions. Difficult choices have to be made, and economic evaluation offers a systematic and transparent process for informing such choices. A key component of economic evaluation is how to value the benefits of health care in a way that permits comparison between health care interventions, such as through costs per quality-adjusted life years (QALY). Measuring and Valuing Health Benefits for Economic Evaluation examines the measurement and valuation of health benefits, reviews the explosion of theoretical and empirical work in the field, and explores an area of research that continues to be a major source of debate. It addresses the key questions in the field including: the definition of health, the techniques of valuation, who should provide the values, techniques for modelling health state values, the appropriateness of tools in children and vulnerable groups, cross cultural issues, and the problem of choosing the right instrument. This new edition contains updated empirical examples and practical applications, which help to clarify the readers understanding of real world contexts. It features a glossary containing the common terms used by practitioners, and has been updated to cover new measures of health and wellbeing, such as ICECAP, ASCOT and AQOL. It takes into account new research into the social weighting of a QALY, the rising use of ordinal valuation techniques, use of the internet to collect data, and the use of health state utility values in cost effectiveness models. This is an ideal resource for anyone wishing to gain a specialised understanding of health benefit measurement in economic evaluation, especially those working in the fields of health economics, public sector economics, pharmacoeconomics, health services research, public health, and quality of life research.

Measuring Social Welfare

Measuring Social Welfare
Author: Matthew D. Adler
Publisher: Oxford University Press
Total Pages: 337
Release: 2019-09-23
Genre: Political Science
ISBN: 0190643048

Disputes over government policies rage in a number of areas. From taxation to climate change, from public finance to risk regulation, and from health care to infrastructure planning, advocates debate how policies affect multiple dimensions of individual well-being, how these effects balance against each other, and how trade-offs between overall well-being and inequality should be resolved. How to measure and balance well-being gains and losses is a vexed issue. Matthew D. Adler advances the debate by introducing the social welfare function (SWF) framework and demonstrating how it can be used as a powerful tool for evaluating governmental policies. The framework originates in welfare economics and in philosophical scholarship regarding individual well-being, ethics, and distributive justice. It has three core components: a well-being measure, which translates each of the possible policy outcomes into an array of interpersonally comparable well-being numbers, quantifying how well off each person in the population would be in that outcome; a rule for ranking outcomes thus described ; and an uncertainty module, which orders policies understood as probability distributions over outcomes. The SWF framework is a significant improvement compared to cost-benefit analysis (CBA), which quantifies policy impacts in dollars, is thereby biased towards the rich, and is insensitive to the distribution of these monetized impacts. The SWF framework, by contrast, uses an unbiased measure of well-being and allows the policymaker to consider both efficiency (total well-being) and equity (the distribution of well-being). Because the SWF framework is a fully generic methodology for policy assessment, Adler also discusses how it can be implemented to inform government policies. He illustrates it through a detailed case study of risk regulation, contrasting the implications of results of SWF and CBA. This book provides an accessible, yet rigorous overview of the SWF approach that can inform policy-makers and students.

Valuing Health

Valuing Health
Author: Daniel M. Hausman
Publisher: Oxford University Press, USA
Total Pages: 289
Release: 2015
Genre: Medical
ISBN: 0190233184

Valuing Health provides a philosophically sophisticated overview of generic health measurement systems, which clarifies their value commitments and criticizes their dependence on preference surveys to assign values to health states. In it, philosopher Daniel M. Hausman argues that the public value of health states depends on the activity limits and suffering that health states impose.

Measuring Poverty and Wellbeing in Developing Countries

Measuring Poverty and Wellbeing in Developing Countries
Author: Channing Arndt
Publisher: OUP Oxford
Total Pages: 372
Release: 2016-12-15
Genre: Business & Economics
ISBN: 0198744803

This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. Detailed analyses of poverty and wellbeing in developing countries, based on household surveys, have been ongoing for more than three decades. The large majority of developing countries now regularly conduct a variety of household surveys, and the information base in developing countries with respect to poverty and wellbeing has improved dramatically. Nevertheless, appropriate measurement of poverty remains complex and controversial. This is particularly true in developing countries where (i) the stakes with respect to poverty reduction are high; (ii) the determinants of living standards are often volatile; and (iii) related information bases, while much improved, are often characterized by significant non-sample error. It also remains, to a surprisingly high degree, an activity undertaken by technical assistance personnel and consultants based in developed countries. This book seeks to enhance the transparency, replicability, and comparability of existing practice. In so doing, it also aims to significantly lower the barriers to entry to the conduct of rigorous poverty measurement and increase the participation of analysts from developing countries in their own poverty assessments. The book focuses on two domains: the measurement of absolute consumption poverty and a first order dominance approach to multidimensional welfare analysis. In each domain, it provides a series of flexible computer codes designed to facilitate analysis by allowing the analyst to start from a flexible and known base. The book volume covers the theoretical grounding for the code streams provided, a chapter on 'estimation in practice', a series of 11 case studies where the code streams are operationalized, as well as a synthesis, an extension to inequality, and a look forward.

Measuring Economic Welfare

Measuring Economic Welfare
Author: George W. McKenzie
Publisher: Cambridge University Press
Total Pages: 201
Release: 1983-03-10
Genre: Business & Economics
ISBN: 0521248620

Professor McKenzie proposes and formulates a method composed of operational procedures designed to facilitate the evaluation of economic projects and policies. This method is discussed fully, illustrated by simple examples, and compared with alternative procedures. An outline of a computer program that enables readers to undertake their own calculations is included. In order to present the approach clearly, the author provides an exposition of the fundamental ideas and the main alternative approaches to the problem. These rely on various forms of index numbers and consumer surplus. However, as is well known, such measures are not capable of correctly ordering the various alternatives under consideration, except under highly unrealist assumptions. In this book the author suggests the abandonment of this traditional approach based on the concept of 'willingness-to-pay' or the conpensating variation. Instead, the measure that Samuelson has called the 'money-metric' should become the cornerstone of applied welfare economics.

Thinking and Deciding

Thinking and Deciding
Author: Jonathan Baron
Publisher: Cambridge University Press
Total Pages: 549
Release: 2023-07-31
Genre: Psychology
ISBN: 1009263625

The fifth edition of the classic text Thinking and Deciding updates the broad overview of the field of judgments and decisions offered in previous editions. It covers the normative standards used to evaluate conclusions, such as logic, probability, and various forms of utility theory. It explains descriptive accounts of departures from these standards, largely in terms of principles of cognitive psychology, emphasizing the distinction between search processes and inferences. Chapters cover decisions under risk, decision analysis, moral decisions and social dilemmas, and decisions about the future. Although the book assumes no particular prerequisites beyond introductory high-school algebra, it is most suited to advanced undergraduates, early graduate students, and active researchers in related fields, such as business, politics, law, medicine, economics, and philosophy.