Measuring consumer surplus with unknown Hicksian demands.
An intuitive, computationally simple, and accurate measure of welfare change is proposed in cases where estimated demand and supply functions do not yield an easily recoverable cost or utility function. This procedure for measuring consumer surplus is based upon what is termed the Slutsky compensate...
| Publicado en: | American Economic Review Vol. 88; no. 1; pp. 314 - 323 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
American Economic Association
March 1998
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | An intuitive, computationally simple, and accurate measure of welfare change is proposed in cases where estimated demand and supply functions do not yield an easily recoverable cost or utility function. This procedure for measuring consumer surplus is based upon what is termed the Slutsky compensated demand—or supply in the labor case. The error associated with using the Slutsky demand to measure the true compensating variation or equivalent variation yields exceedingly small errors for relatively large price changes. |
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