Publication Number: 2025-01
Publication Date: January 2025
In welfare economics, the theory of second best is inextricably linked to an
article by Richard George Lipsey and Kelvin John Lancaster, published in 1956 in the
Review of Economic Studies. The publication of this article was encouraged by Harry
Gordon Johnson, who was a member of the journal’s editorial board at the time. Over
the years, these three economists have reflected on the origins of this article. While their
accounts share common elements, they also diverge significantly, particularly regarding
the allocation of scientific credit. This note seeks to compare their accounts, to provide
context about the intellectual environment surrounding the article’s conception and to
highlight the relationships between these three economists.
