Theory of wellbeing and Pareto optimality as microeconomics problems

Abstract

The present paper attempts to give a general vision of the dilemma that the definition and measurement of wellbeing constitutes and becomes a permanent challenge for academics in social and economic sciences, because wellbeing is a very difficult concept to define due to subjective aspects that affects the individual and collective wellbeing, being a multidimensional concept it is nearly impossible to cover from empirical data. The objective of this paper is to base theoretically the difficulties in the definition and measurement of wellbeing. The investigation is centered in bibliographical and documental research such as reviewing, conceptual and theoretical analysis of different bibliography. Main Findings: Wellbeing is a difficult concept to define, due to subjective aspects that affects the individual and collective wellbeing. The application of the theory of wellbeing rationally leads to minimize the social inequality and establish a just measure of distribution of the limited resources. The concept of utility, in light of wellbeing as a relative concept, depends on the valuation that is assigned by each individual.

La Calera, Vol.14 No.22, Mayo 2014, pp.50-56