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asked ago in Current Economic Issues by (170 points)
Ideas on how to measure or formulate social welfare are welcome. Myself and a colleague are working on a paper to formulate and apply aggregate social welfare on country level.

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answered ago by (2.3k points)
Direct democracy theory sais that the only way to know the social welfare curve is through voting. There are a few problems concerning social voting as cyclical choices or rigged elections (where people make choices trying not to make other popular choices elected lying in their second choices) . I think that it's very difficult to know the actual choices of a large group of people is we don't rely on private market. But if every citizen is sincere and takes it's election as a binding one, we can measure public goods and services utility or social welfare by citizen's willingness to pay for them.
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