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On Measuring the Value of a Nonmarket Good Using Market Data

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Author Info
Bullock, David S.
Minot, Nicholas

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Abstract

Our purpose is to present in detail numerical methods of measuring the value of nonmarket goods using market data, under either weak neutrality, weak complementarity, or any other preference restriction meeting the requirements discussed in this paper. It has been claimed in a number of places in the literature that numerical methods cannot be used to measure the value of nonmarket goods unless the very restrictive Willig conditions are satisfied. We show that this claim is mistaken, and that numerical methods can be used whether or not the Willig conditions are satisfied. Our numerical methods are more flexible than the existing analytical method because ours can be used with any Marshallian demand system.

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Publisher Info
Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25272.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25272

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Keywords: Resource /Energy Economics and Policy;

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  1. David G. Brown, . "A Revealed Preference Feasibility Condition for Weak Complementarity," Departmental Working Papers 2009-08, Department of Economics, Louisiana State University. [Downloadable!]
  2. Aaron Strong & V. Kerry Smith, 2008. "Reconsidering the Economics of Demand Analysis with Kinked Budget Constraints," NBER Working Papers 14304, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. 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)
  4. David G. Brown, . "Preference-Theoretic Weak Complementarity: Getting More with Less," Departmental Working Papers 2008-09, Department of Economics, Louisiana State University. [Downloadable!]
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This page was last updated on 2009-11-26.


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