Nonparametric Approaches to Empirical Welfare Analysis.
Welfare analysis of policy interventions is ubiquitous in economic research. It plays an important role in merger analysis and antitrust litigation, design of tax and subsidies, and informs the current debate on a universal basic income. This paper provides a survey of existing empirical methods, ba...
| Publicado en: | Journal of Economic Literature Vol. 62; no. 2; pp. 554 - 594 |
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| Autor principal: | |
| Formato: | Literature Review |
| Publicado: |
American Economic Association
Jun2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=177658369&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 177658369 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00220515 JEL jtl: Journal of Economic Literature issn: 00220515 maglogo: N pubinfo: dt: Jun2024 vid: 62 iid: 2 pid: 22 pub: American Economic Association artinfo: ui: 177658369 10.1257/jel.20221534 ppf: 554 ppct: 40 formats: tig: atl: Nonparametric Approaches to Empirical Welfare Analysis. aug: au: Bhattacharya, Debopam affil: University of Cambridge. su: Public welfare policy Subsidies Basic income Economic research Antitrust violation lawsuits Demand function Tax incentives sug: subj: Public welfare policy Subsidies Research and Development in the Social Sciences and Humanities Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs) Emergency and Other Relief Services Other Individual and Family Services Basic income Economic research Antitrust violation lawsuits Demand function Tax incentives ab: Welfare analysis of policy interventions is ubiquitous in economic research. It plays an important role in merger analysis and antitrust litigation, design of tax and subsidies, and informs the current debate on a universal basic income. This paper provides a survey of existing empirical methods, based on cross-sectional microdata, for calculating welfare effects and deadweight loss resulting from realized or hypothetical policy change. We briefly outline classical parametric methods that are computationally tractable, then discuss recent nonparametric approaches that avoid making statistical and functional-form restrictions on individual preferences. This makes the welfare estimates theoretically more credible, and clarifies exactly what welfare-relevant information is contained in demand distribution in various choice settings. However, these methods also demand greater in-sample variation in the data for practical implementation than classical parametric approaches. We then cover settings with externalities. The above results are theoretical, and take the demand function as known; therefore, we briefly discuss empirical problems around demand estimation. We conclude by suggesting areas for future research. (JEL C14, C35, D11, D60, D62) pubtype: Academic Journal doctype: Literature Review src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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