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...
| Published in: | American Economic Review Vol. 88; no. 1; pp. 314 - 323 |
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| Main Authors: | , |
| Format: | Article |
| Published: |
American Economic Association
March 1998
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512624404&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512624404 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: March 1998 vid: 88 iid: 1 pid: 22 pub: American Economic Association artinfo: ui: 512624404 ppf: 314 ppct: 9 formats: tig: atl: Measuring consumer surplus with unknown Hicksian demands. aug: au: Irvine, Ian J. Sims, William A. su: Substitution (Economics) Consumers' surplus Labor supply Welfare economics sug: subj: Substitution (Economics) Consumers' surplus Labor supply Welfare economics keyword: Slutsky equation ab: 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. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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