The Kaldor-Hicks (KH) criterion has long been the standard for benefit-cost analysis, but it has also been widely criticized for ignoring equity and, arguably, moral sentiments in general. We suggest replacing KH with an aggregate measure called KHM, where the M stands for moral sentiments. KHM...

Sagoff believes that welfare has meaning beyond its relation to preference, i.e., that there is a “substantive and independently defined conception of welfare” that is measured by KH but not by KHM. In contrast, we find that the foundation of both KH and KHM is not welfare, which is not...

The Kaldor-Hicks (KH) criterion has long been the standard for benefit-cost analysis, but it has also been widely criticized for ignoring equity and, arguably, moral sentiments in general. We suggest replacing KH with an aggregate measure called KHM, where the M stands for moral sentiments. KHM...