Another Look at the Social Valuation of Input Price Changes.
The article presents views of the author at the social valuation of input price changes. The author considered the consumer surplus valuation of changes in the private and social cost of an intermediate good used by a competitive industry that produced a consumer good under constant returns to scale...
| Publicado en: | American Economic Review Vol. 66; no. 1; pp. 239 - 244 |
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| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
American Economic Association
Mar1976
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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=hlh&AN=4504926&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4504926 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Mar1976 vid: 66 iid: 1 pid: 22 pub: American Economic Association artinfo: ui: 4504926 ppf: 239 ppct: 5 formats: tig: atl: Another Look at the Social Valuation of Input Price Changes. aug: au: Schmalensee, Richard affil: Associate Professor of Economics, University of California, San Diego. su: Consumers' surplus Economic demand Externalities Elasticity (Economics) Neoclassical school of economics Direct costing Wisecarver, Daniel Pricing Cost accounting sug: subj: Consumers' surplus Economic demand Externalities Elasticity (Economics) Neoclassical school of economics Direct costing Wisecarver, Daniel Pricing Cost accounting ab: The article presents views of the author at the social valuation of input price changes. The author considered the consumer surplus valuation of changes in the private and social cost of an intermediate good used by a competitive industry that produced a consumer good under constant returns to scale. The author concluded that since the input market can at best reflect the consumer's surplus generated in the final product market, the appropriate measure should be used. The following two sections consider the social valuation of a change in the social cost of the first input, accompanied by a change in the private cost. The basic reason for this bias is simple. Under perfect competition, the net surplus is maximized for given input prices by marginal cost pricing of the final product, so that the partial derivative with respect to output is zero. Under imperfect competition, however, this partial derivative is positive since the community as a whole would benefit from increased output. But the welfare effect of ceteris paribus output changes is not reflected in input demand functions, and it thus cannot be detected by analysis of input markets pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1976 holdings: @attributes: islocal: N |
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