Suchergebnisse

Considering efficiency, equality, and morality, this book argues for qualified market expansion, particularly in legalizing kidney sales and prostitution. Legalizing prostitution will benefit both men and women, as argued in a chapter jointly written with Yan Wang. Blood donation without monetary compensation can still result in adequate blood supply if schools educate children that blood donation can actually benefit a donor's health. As a society becomes more advanced, with higher incomes and a better educated populace, more activities can be subject to market exchange, with gradual popular acceptance. Without serious misinformation and irrationality, inequality/fairness as such cannot be a valid reason for limiting the scope of the market. The book supports the use of markets to increase efficiency while also increasing the effort to promote equality, making all income groups better off.

Welfare economics: Reducing animal suffering at negligible costs
Yew-Kwang Ng, Emeritus Professor from the Department of Economics, at Monash University in Australia, argues the case for reducing animal suffering at negligible costs to human beings. Animal welfare protection has been of important practical concern in many countries globally. For example, in Australia, the Federal Government appointed an independent panel in 2023 to consult on the transition from live sheep export to a better future for animals. Also, opposition to recreational duck hunting/shooting has gained more popular support.

Using lotteries instead of auctioning is both inefficient and inequality-creating
Yew-Kwang Ng, Emeritus Professor in the Department of Economics at Monash University, compares the use of the lottery and auctioning to allocate scarce goods. In a recent eBook for Open Access Government, I discuss the anti-market sentiment, including why it is common, based on incorrect reasonings, and how recognising this mistake may make us more accepting of the beneficial market expansion. Here, I discuss a specific manifestation of this anti- market sentiment: Using the lottery to allocate scarce goods (including resources and services) instead of using the market (such as auctioning). An example is the allocation of permits for car ownership. In Singapore, a Certificate of Entitlement (COE) is required to buy a car. Singapore allocates these COEs by the most efficient Vickrey second-price auction. (1)

A case for higher spending on public goods
Yew-Kwang Ng, Emeritus Professor in the Department of Economics at Monash University in Australia, argues in favor of increased spending on public goods. An important issue in public policy is how much we should spend on public goods. A pure public good has the characteristic that its usage by some does not reduce its availability to others. Examples include defense, broadcasting, publication, and research. Private goods (subsuming services) like apples or haircuts are typically paid for by consumers. In a market economy, their provision and prices are thus typically determined by the balance of supply and demand. The demand is in accordance with the willingness to pay by the consumers; this, in turn, depends on their marginal valuation (the additional value provided by consuming another unit). On the other hand, the supply depends on the marginal costs of production (the additional costs of producing another unit).

Welfare economics: Promoting equality through general policies
Yew-Kwang Ng, Emeritus Professor at the Department of Economics, Monash University, continues a discussion about welfare economics, focusing on efficiency supremacy in specific areas, arguing that equality should be promoted through general policies. In the April issue, I published a piece on 'An Economic Analysis of Social Welfare' and in an Open Access Government eBook, a piece on 'The Welfare Foundation of Public Policies and Its Implications'. Here, and in subsequent pieces in October 2023, January and April 2024, I will discuss some important messages of welfare economics for public policies.

An economic analysis of social welfare
Welfare economics may be defined as the branch of study which formu lates propositions by which we can say that the social welfare in one economic situation is higher or lower than in another (Ng 2004, 2015(1)). Briefly, it is the economic analysis of social welfare. As a society consists of individuals in that society, social welfare is just the welfare of individuals in that society. Here, welfare is defined as the happiness of the individual. Though some authors since Aristotle require some ethical/eudemonic elements in the definition of welfare in addition to happiness, I argue (Ng 2022, Ch.1) that it is most simple to separate the subjective/hedonic element from the eudemonic element; the latter element being regarded as an issue in morality, not in the concept of welfare or happiness

This commentary supports Crump et al.'s (2022) point that where risks to welfare are severe, strong evidence of sentience is sufficient to warrant protecting welfare. Crump et al.'s eight criteria for sentience are also useful. Flexible decision-making (5) and flexible behaviour (6) are consistent with Ng (1995). The concession that the "no-need-for-sentience" proposition is unnecessary also strengthens the importance of the target article's conclusions.

This commentary supports Crump et al.'s (2022) point that where risks to welfare are severe, strong evidence of sentience is sufficient to warrant protecting welfare. Crump et al.'s eight criteria for sentience are also useful. Flexible decision-making (5) and flexible behaviour (6) are consistent with Ng (1995). The concession that the "no-need-for-sentience" proposition is unnecessary also strengthens the importance of the target article's conclusions.