Robustness Measures for Welfare Analysis.
Economists routinely make functional form assumptions on demand curves to derive welfare conclusions. How sensitive are these conclusions to such assumptions? In this paper, we develop robustness measures that quantify the extent to which the true demand curve must deviate from common functional for...
| Publicado en: | American Economic Review Vol. 115; no. 8; pp. 2449 - 2488 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
American Economic Association
Aug2025
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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=187070283&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 187070283 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Aug2025 vid: 115 iid: 8 pid: 22 pub: American Economic Association artinfo: ui: 187070283 10.1257/aer.20220673 ppf: 2449 ppct: 39 formats: tig: atl: Robustness Measures for Welfare Analysis. aug: au: Kang, Zi Yang Vasserman, Shoshana affil: Department of Economics, University of Toronto Graduate School of Business, Stanford University and NBER su: Demand function Information design Curvature sug: subj: Demand function Information design Curvature ab: Economists routinely make functional form assumptions on demand curves to derive welfare conclusions. How sensitive are these conclusions to such assumptions? In this paper, we develop robustness measures that quantify the extent to which the true demand curve must deviate from common functional form assumptions in order to overturn a welfare conclusion. We parametrize this variability in terms of the gradient and curvature of the demand curve. By leveraging tools from information design, we show that our measures are easy to compute. Our measures are also flexible and easy to use, as we illustrate through empirical applications. (JEL D01, D60, F13, H55, Q48) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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