An Aristotelian Social Welfare Function

This article proposes a new social welfare measure based on Aristotle's theory of reciprocity. Unlike existing metrics of social welfare, the proposed Aristotelian social welfare function measures reciprocity in a society, that is, the degree to which members of a society cooperate to benefit each other. We provide numerical estimates of the welfare function using data from income distribution quintiles in the recent past for the U.S., Germany, Russia, Ukraine, and Iran. The numerical results show that, starting from different initial values, the U.S. and Germany have experienced declining social welfare, while Iran and Ukraine have experienced increasing social welfare. GDP per capita appears to be inversely correlated with social welfare in the U.S. and Germany. Europeans seem to enjoy higher social welfare than Americans. The article introduces its topic by advancing criticism that contemporary approaches to social welfare, such as the capabilities approaches, estimate a presumed welfare of individuals, rather than social welfare.