Pigou's “Old” Welfare Economics, Hicks's Farewell to Welfarism
Pigou’s “Old” Welfare Economics, Hicks’s Farewell to Welfarism, and Sen’s Non-Consequentialist Economics of Well-Being and Freedom Kotaro Suzumura Professor Emeritus, Hitotsubashi University Professor Emeritus and Honorary Fellow, Waseda University and Member of the Japan Academy September 5, 2016 Paper prepared for the Conference on Economic Thought of Cambridge, Oxford, LSE, and the Transformation of the Welfare State, September 5-7, 2016 held at Sano Shoin, Hitotsubashi University, Kunitachi, Tokyo, Japan. Acknowledgements I am grateful to Kenneth Arrow, Roger Backhouse, Walter Bossert, Tamotsu Nishi- zawa, Amartya Sen, Koichi Tadenuma, and Yongsheng Xu for their helpful comments and discussions over the years. Thanks are also due to the financial support provided by the Research Project (Pursuit of Normative Economics with Extended Informational Bases, and the Re-examination of Its Doctrinal History) through the Grant-in-Aid for Scientific Research from the Ministry of Education, Culture, Sports, Science and Tech- nology of Japan (grant number 16H03599). I am indebted to the University of Hyogo, which enabled me to scrutinize two unpublished documents [Hicks (no date; c. 1955) and Hicks (no date; c. 1963)] kept as part of the Library and Papers of Sir John Hicks. Without this fortunate access, I would not have solidified my understanding of the meanng and reach of Hicks’s non-welfarist manifesto. 1 Abstract John Richard Hicks played a crucial role in creating the “new” welfare economics on the basis of hypothetical compensation principle immediately after Arthur Pigou’s “old” welfare economics collapsed in face of Lionel Robbins’s epistemological criticism on the Benthamite utilitarian basis of Pigou’s edifice.
[Show full text]