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A Diagrammatic Exposition of Weak Complementarity and the Willig Condition

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Author Info
V. Kerry Smith
H. Spencer Banzhaf

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Abstract

This article provides a graphical explanation for one of the most important restrictions to utility functions used in revealed preference approaches for measuring the demand for public goods and product quality-weak complementarity. It also describes how the Willig condition is an important element along with weak complementarity in measuring Hicksian consumer surplus for changes in public goods or quality using Marshallian demand curves. Copyright 2004 American Agricultural Economics Association.

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 86 (2004)
Issue (Month): 2 (05)
Pages: 455-466
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Handle: RePEc:bla:ajagec:v:86:y:2004:i:2:p:455-466

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  1. V. Kerry Smith & Mary F. Evans & H. Spencer Banzhaf & Christine Poulos, 2008. "Can Weak Substitution be Rehabilitated?," NBER Working Papers 13903, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. V. Smith & George Van Houtven, 2004. "Recovering Hicksian Consumer Surplus within a Collective Model: Hausman's Method for the Household," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(2), pages 153-167, June. [Downloadable!] (restricted)
  3. V. Smith & Subhrendu Pattanayak, 2002. "Is Meta-Analysis a Noah's Ark for Non-Market Valuation?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 271-296, June. [Downloadable!] (restricted)
  4. Smith, V. Kerry & Banzhaf, H. Spencer & Walsh, Randy, 2002. "General Equilibrium Benefit Transfers for Spatial Externalities: Revisiting EPA's Prospective Analysis," Discussion Papers dp-02-44, Resources For the Future. [Downloadable!]
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This page was last updated on 2008-7-9.


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