A welfare decomposition in quasi-linear economies
AbstractWe propose a decomposition of social welfare when consumers' preferences are described by quasi-linear utility functions. In our decomposition, social welfare is expressed as the sum of consumers' gross utilities and trade surplus of non-numeraire goods, whose consumption enters utility functions non-linearly. This decomposition is useful especially when we assess the impact of trade liberalization on individual countries. We propose a decomposition of social welfare when consumers' preferences are described by quasi-linear utility functions. In our decomposition, social welfare is expressed as the sum of consumers' gross utilities and trade surplus of non-numeraire goods, whose consumption enters utility functions non-linearly. This decomposition is useful especially when we assess the impact of trade liberalization on individual countries.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 85 (2004)
Issue (Month): 1 (October)
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- F10 - International Economics - - Trade - - - General
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