The Hicks-Kaldor (H-K) Criterion suggests that that if a project's CBA yields a positive NPV, then we need not concern ourselves with any adverse distributional consequences.

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The Hicks-Kaldor (H-K) Criterion suggests that that if a project's CBA yields a positive NPV, then we need not concern ourselves with any adverse distributional consequences. H-K asserts that it would be possible for the "winners" from the project to use some of their gains to compensate the "losers".H-K does not require that the redistribution of wealth actually happens. The only requirement is that the potential to redistribute exists.

The Hicks-Kaldor (H-K) Criterion Suggests That That If a Project's