Compensating Variation, Consumer's Surplus, and Welfare.

This article analyzes the conditions under which the compensating variation can be validly used in this generalized sense. These turn out to be precisely the same as conditions previously derived for the valid use of consumer's surplus as a welfare measure. In the final section of this article, the...

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Publicado en:American Economic Review Vol. 70; no. 5; pp. 933 - 950
Autores principales: Chipman, John S., Moore, James C.
Formato: Artículo
Publicado: American Economic Association Dec80
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Compensating Variation, Consumer's Surplus, and Welfare.
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        au:
          Chipman, John S.
          Moore, James C.
        affil:
          University of Minnesota
          Indiana/Purdue University
      su:
        Consumers' surplus
        Consumers
        Income
        Cost effectiveness
        Cost analysis
        Theory of distributions (Functional analysis)
        Consumer preferences
      sug:
        subj:
          Consumers' surplus
          Consumers
          Income
          Cost effectiveness
          Cost analysis
          Theory of distributions (Functional analysis)
          Consumer preferences
      ab: This article analyzes the conditions under which the compensating variation can be validly used in this generalized sense. These turn out to be precisely the same as conditions previously derived for the valid use of consumer's surplus as a welfare measure. In the final section of this article, the authors analyze the problem of deriving the generalized equivalent and compensating variations, either exactly or approximately, from observable demand functions, by means of generalizations of, or alternatives to, consumer's surplus.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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