Blackorby, Charles; Donaldson, David - In: Canadian Journal of Economics 23 (1990) 3, pp. 471-94
This paper presents a case against the use of the sum of compensating variations as a cost-benefit test. The authors argue that (1) the ethical judgments implied by the test are not defensible; (2) positive sums of compensating variations occur without potential Pareto improvements, resulting in...
