Pareto’s sociological maximum of utility of the community and the theory of the elites

In Jurgen Backhaus (ed.), Essentials of Fiscal Sociology. Conceptions of an Encyclopedia. Peter Lang. pp. 231-265 (2013)

Authors
Paolo Silvestri
Università degli Studi di Torino
Abstract
The paper deals with three interrelated Pareto’s contributions to fiscal sociology of relevant contemporary importance, i. e., the maximum of utility of the community as a sociological process (Pareto II criterion of maximum welfare), the non logical actions consisting of derivations based on residuals and the theory of the elites. Pareto II welfare criterion of sociological maximization of individual utilities is compared with Pareto I welfare criterion, commonly known as Pareto criterion, introducing the process of valuations by the elite of the utilities of different social groups weighed according to their residuals. Derivations are essentials to persuade the masses to move to the points designed by the elite. The process is subject to the law of circulation of the elites which leads to different sociological equilibriums. The theories of the elites of Pareto and Mosca, criticized by Einaudi, are then compared. For a disenchanted analysis of the fiscal processes and designs, Pareto’s sociology may still provide to the economist more than a help.
Keywords Pareto  Fiscal sociology  elites theories
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