Table 3.
Theoretical studies related to welfare effects in rural deprived areas.
| Theory | Concept | Representation |
|---|---|---|
| Welfare Economics | The efficient allocation of resources through income redistribution to achieve Pareto optimality, which in turn increases total social utility and enhances total social welfare | Arthur Cecil Pigou, 1920 |
| Theory of Ordinal Utility | The welfare of society as a whole is improved through redistribution so that those who have suffered are better off than before the change after receiving compensation from those who have benefited | Nicholas Kaldor, 1939 |
| Consumer Surplus Theory | The difference between the total amount consumers are willing to pay for a good and the actual amount they spend on it is often used to measure and analyze social welfare issues | John Richard Hicks, 1939 |
| The Hierarchy of Needs Theory | Examining the welfare effects in impoverished rural areas so that welfare measures meet the needs of each stratum of the population and thus increase the total welfare utility | Maslow, 1943 |
| Theory of Justice | The goal of society should be to maximize the effectiveness of the weakest in society and to ensure that everyone has the opportunity to earn something for their work | Rawls, 1971 |