In order to bridge the great gap between the West and East ,the West administered a great amount of financial transfuse to the East through the Unification of the funds and thetransposition pay of the Federation and lands,of which the social welfare transposition pay was great .
Using a short-run partial equilibrium model of social welfare, this paper examines the social welfare implications of changing Pigouvian taxes under three markets: perfect competition, monopoly, and Cournot oligopoly.
Numerical simulation finds that the social welfare cost of rigidity is increasing in the concavity of the economy's welfare function.
By focussing on the Social Welfare Ordering associated with a bargaining solution, we characterize the symmetric Nash Bargaining Solution (NBS).
It is also argued that anybody who feels that the utilitarian (i.e., linear) form of the social welfare function is not egalitarian enough, should reject the author's individualism axiom, instead of trying to reject the Bayesian rationality axioms.
The social welfare function proposed by the author depends on interpersonal utility comparisons.