Hicks–Kaldor compensation criterion

E204382

The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.

Try in SPARQL Jump to: Surface forms Statements Referenced by

All labels observed (7)

Statements (43)

Predicate Object
instanceOf economic efficiency criterion
welfare economics concept
aimsAt efficiency evaluation without explicit value judgments on equity
alsoKnownAs Hicks–Kaldor compensation criterion
surface form: Kaldor–Hicks efficiency criterion
appliesTo policy changes with winners and losers
assumes individual preferences are given
interpersonal utility comparisons are not required
monetary measures of gains and losses
category economic theorems and concepts
compares alternative social states
contrastsWith actual Pareto improvement
coreIdea a policy change is desirable if gainers could in principle compensate losers and still be better off
criticizedFor ignoring distributional consequences
not ensuring losers are actually compensated
path dependence of evaluations
possibility of inconsistent social rankings
defines Hicks–Kaldor compensation criterion self-linksurface differs
surface form: Kaldor–Hicks efficiency
doesNotRequire actual compensation
field cost–benefit analysis
microeconomics
welfare economics
generalizes Pareto improvement concept
hasLimitation depends on initial income distribution
sensitive to choice of numeraire
influenced modern cost–benefit analysis standards
influencedBy welfare economics
surface form: Paretian welfare economics
involves potential Pareto improvement
language English term
measurementBasis willingness to accept
willingness to pay
namedAfter John R. Hicks
surface form: John Hicks

Nicholas Kaldor
originPeriod 1930s
relatedTo Pareto efficiency
Hicks–Kaldor compensation criterion self-linksurface differs
surface form: Scitovsky paradox
requires aggregate gains exceed aggregate losses in monetary terms
potential compensation only
usedIn cost–benefit analysis of public projects
law and economics
policy evaluation
usedToJustify policies with net monetary benefits
uses hypothetical compensation test
weakerThan Pareto efficiency
surface form: Pareto criterion

How these facts were elicited

The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.

Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10.

# Requirements
- If you don't know the subject at all, return an empty list.
- If the subject is not a named entity, return an empty list.
- Include at least one triple where predicate is "instanceOf".
- Do not get too wordy.
- Separate several objects into multiple triples with one object.
Input
Subject: Hicks–Kaldor compensation criterion
Description of subject: The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.

Referenced by (11)

Full triples — surface form annotated when it differs from this entity's canonical label.

John R. Hicks knownFor Hicks–Kaldor compensation criterion
law and economics movement coreConcept Hicks–Kaldor compensation criterion
this entity surface form: Kaldor-Hicks efficiency
Pareto efficiency relatedConcept Hicks–Kaldor compensation criterion
this entity surface form: Kaldor–Hicks efficiency
welfare economics usesConcept Hicks–Kaldor compensation criterion
this entity surface form: Kaldor–Hicks efficiency
Hicks–Kaldor compensation criterion alsoKnownAs Hicks–Kaldor compensation criterion
this entity surface form: Kaldor–Hicks efficiency criterion
Hicks–Kaldor compensation criterion defines Hicks–Kaldor compensation criterion self-linksurface differs
this entity surface form: Kaldor–Hicks efficiency
Hicks–Kaldor compensation criterion relatedTo Hicks–Kaldor compensation criterion self-linksurface differs
this entity surface form: Scitovsky paradox
Kaldor notableWork Hicks–Kaldor compensation criterion
subject surface form: Nicholas Kaldor
this entity surface form: Kaldor–Hicks efficiency
Baron Kaldor notableFor Hicks–Kaldor compensation criterion
subject surface form: Nicholas Kaldor
this entity surface form: Kaldor–Hicks efficiency concept
Baron Kaldor notableIdea Hicks–Kaldor compensation criterion
subject surface form: Nicholas Kaldor
this entity surface form: Kaldor–Hicks compensation principle
Economic Analysis of Law appliesConcept Hicks–Kaldor compensation criterion
this entity surface form: Kaldor–Hicks efficiency