The Economics of Welfare av Arthur Pigou

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<p><em>The Economics of Welfare </em>occupies a privileged position in economics. It contributed to the professionalization of economics, a goal aggressively and effectively pursued by Pigou''s predecessor and teacher Alfred Marshall. <em>The Economics of Welfare </em>also may be credited with establishing welfare economics, by systematically analyzing market departures and their potential remedies. In writing <em>The Economics of Welfare</em>, Pigou built a bridge between the old and the new economics at Cambridge and in Britain. Much of the book remains relevant for contemporary economics. The list of his analyses that continues to play an important role in economics is impressive. Some of the more important include: public goods and externalities, welfare criteria, index number problems, price discrimination, the theory of the firm, the structure of relief programs for the poor, and public finance. Pigou''s discussion of the institutional structure governing labor-market operations