Welfare economics is associated with two main theorems. The first is that competitive markets yield Pareto efficient outcomes. The second is that social welfare can be maximized at an equilibrium ...

It was lauded as a major breakthrough and went on to be widely used for analyzing problems in welfare economics. Example of Arrow's Impossibility Theorem Let’s look at an example illustrating ...

Many of those in prominent policy roles today learned their economics from textbooks and courses based on that relatively orderly economy. In particular, the framework for evaluating policies relied ...