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Industry : Asset Management Functional Area : M&A
Activity:  3 comments  110 views  last activity : 07 06 2010 20:18:04 +0000
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A Sovereign Nation lives in harmony and peace when the ‘living standards’ of it’s citizen is better and is improving. This happens when the ‘Utility’ derived from life in a Nation improves in time.

Social Welfare Function defines and helps in generating conscionable policies when this      is kept in mind when generating them which is called ‘public good’.

Suppose if call ‘ω’ the endowment of each individual, α his return on his endowment each year and Π the risk in generating this return then social welfare function is defined as a Utility maximiser for each individual which is function of these variables.

               n

Ie; U =   Σ (Πi αi ωi )

            i= 1

This is an affine function which grows at decreasing rate when we normalize this using Lagrnagian. The Lagrangian multiplier λi is higher for lower endowed entities than for higher endowed entities in a population of n. Now incorporating the reciprocal of α in the social welfare function probity is included in it meaning rich people highly endowed make lesser returns than poor people lowly endowed for social probity.

This means for social public good the social welfare function should hold in our policies, social, economic and in our transactions

 Top Comment : Jyoti Rath   | 05 25 2009 10:35:25 +0000
Nice insight Mathew....Thanks for the referral..and yes agree with you that social welfare should be given more importance...
 
3 comments on "Why Social Welfare Function should be there in our Political, social and commercial process for Probity"
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 05 25 2009 17:40:32 +0000
Rating : +1 
I can understand the sentiment of Mr. Ajay expecially being aware of the sorroundings where he lives and writes this. He should understand that the whole gamut of life is making money. I too underscore that fact but I only state how it is done legitmately with the hellp of Government or people's representatives or how it is done by nations who improved their Nation's wealth and prosperity by doing so following legitimate scales of articulation and meaningful work ethics.
Sorry if my posting was not of any use to you, hopefully you are not an economics major to start with understanding what I write. I try to make everything simple.
  Commented by  Ajay Ziz, Dy. Registrar, university of jammu    | 05 25 2009 10:56:06 +0000
Rating : +1 
social welfare is a tumour which when used by the goverment ineffectively eventually becomes cancerous( last stage)
and leads to the death & possible disintegration of a nation .

this is where india is heading for ..................... mind u all.
till what time the 4wd vehicles , minesweepers of indian army will save this nation where the prime concern of people is money and money alone and darn it people go on giving hazaar logics for earning money.

O hypocrites! well! we all should cry at the fate of this nation
  Commented by  Jyoti Rath, Sr. Associate, Barclays    | 05 25 2009 10:35:25 +0000
Rating : +2 
Nice insight Mathew....Thanks for the referral..and yes agree with you that social welfare should be given more importance...
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