Conservative Social Welfare Function

Conservative social welfare function in Global Commerce Policy

In this regard, conservative social welfare function is: one of the factors governing the actions of governments in their consideration of trade-liberalizing policies. The entries on trade policy are here. It was first identified by Max Corden in Trade Policy and Economic Welfare. He says that, put in its simplest way, it means that governments feel that in an income distribution target any significant absolute reductions in real incomes should be avoided. The entries on trade policy are here. In other words, he says, increases in incomes are given relatively low weights and decreases very high weights. The conservative social welfare function would therefore partly explain why governments sometimes are cautious about reducing tariffs or removing other trade measures which may affect adversely the operations of industries.[1]

Conservative social welfare functionin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Conservative social welfare function” entry (OAS)

See Also