| Sumario: | The writers examine the conditions under which welfare measurements can be undertaken in a world of market and nonmarket goods—most environmental goods—and their implications for applied work. They derive necessary and sufficient conditions for the existence of an underlying rational preference structure, based on a system of mixed demand functions with complete information. They examine, with incomplete information, the case of a partial demand system and propose a test for separability. They investigate the implications for testing rationality in a world characterized by combined real market data and stated data for data consistency. They derive testable conditions for data consistency that extend previous results in the literature to the case of a system of mixed demand functions.
|
|---|