Social efficiency

This is a concise introduction to welfare economics and cost-benefit analysis intended primarily for students of Economics at the university level, with a basic knowledge of micro-economic theory.
The author gives a succinct presentation of the main elements of welfare economics and cost-benefit analysis. The general purpose is to explain what is meant by efficiency from a social point of view, and also what is meant by such expressions as 'efficient use of a nation's resources', 'optimal allocation of resources', etc. In order to give a cohesive overview of the various problems of social efficiency the presentation is made relatively brief and free from examples and elaborate details. More specifically, the book explains (1) how, and in what sense, social efficiency can be attained in a 'perfect market economy"; (2) how real-world imperfections can be corrected by 'allocation policy'; (3) what the relations are between efficiency and economic policy for stabilisation and income distribution purposes; and (4) what is the cost-benefit criterion for public investments and other specific government measures.