Use of Paasche and Laspeyres Variations to Estimate Consumer Welfare Change
AbstractMany measurements of consumer welfare have been proposed to reflect the income equivalent of a welfare change Measures used in policy evaluations are compensating variation, equivalent variation, Paasche variation, Laspeyres variation, and consumer's surplus This research presents an empirical test for differences among these five welfare measures in a dynamic multimarket context We argue that in many policy evaluations, adequate and rigorous information for decisionmaking is supplied by estimates for the easily calculated Paasche and Laspeyres variations, and consumer's surplus measures
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Bibliographic InfoArticle provided by United States Department of Agriculture, Economic Research Service in its journal Agricultural Economics Research.
Volume (Year): (1981)
Issue (Month): 2 ()
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Consumer welfare change; Paasche variation; Laspeyres variation; consumer's surplus; policy evaluation; Consumer/Household Economics; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods;
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- Just, Richard E & Hueth, Darrell L, 1979. "Welfare Measures in a Multimarket Framework," American Economic Review, American Economic Association, vol. 69(5), pages 947-54, December.
- Currie, John Martin & Murphy, John A & Schmitz, Andrew, 1971. "The Concept of Economic Surplus and its Use in Economic Analysis," Economic Journal, Royal Economic Society, vol. 81(324), pages 741-99, December.
- Silberberg, Eugene, 1972. "Duality and the Many Consumer's Surpluses," American Economic Review, American Economic Association, vol. 62(5), pages 942-52, December.
- Willig, Robert D, 1979. "Consumer's Surplus without Apology: Reply," American Economic Review, American Economic Association, vol. 69(3), pages 469-74, June.
- Burns, Michael E, 1973. "A Note on the Concept and Measure of Consumer's Surplus," American Economic Review, American Economic Association, vol. 63(3), pages 335-44, June.
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