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Measurement of Welfare Change: A Review

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  • Zuhair A. Hassan
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    Abstract

    Three measure commonly used to evaluate the consumer welfare implications of a policy change are reviewed. The notion of consumer surplus is dealt with first, followed by an assessment of the concepts of compensating variation and equivalent variation. The relationships among the three concepts are also considered.

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    File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/95wp141.pdf
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    File URL: http://www.card.iastate.edu/publications/synopsis.aspx?id=127
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    Bibliographic Info

    Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 95-wp141.

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    Date of creation: Nov 1995
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    Handle: RePEc:ias:fpaper:95-wp141

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    1. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-70, March.
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