Kaldor Improvement
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
An improvement criterion proposed by Nicholas Kaldor, which states that a policy or change is desirable if the gains to the beneficiaries are sufficient to compensate the losers, and there is still a net gain after compensation. It relaxes the strict constraints of Pareto improvement.
SCAFFOLDING EFFECT
Reduce cognitive load
A policy evaluation tool. It provides an analytical framework for evaluating policies that have winners and losers. In reform evaluation, it supports achieving potential Pareto improvements through compensation mechanisms, helping to design reform plans that balance efficiency and equity.
Anchor fast decisions
Kaldor's compensation criterion: if the gains to the beneficiaries are sufficient to compensate the losers and still leave a net surplus, then the change is desirable; it emphasizes using compensation mechanisms to turn 'potential' into 'actual' Pareto improvements.
MINIMUM ACTION
In progress 0/4Practice this model in one real situation:
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E5%8D%A1%E5%B0%94%E5%A4%9A%E6%94%B9%E8%BF%9Bverified
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