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Shadow Pricing Rules for Partially Traded Goods

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Author Info

  • Elio Londero

    (Inter-American Development Bank)

Abstract

This paper shows how to shadow price partially traded goods following the standard rules of cost-benefit analysis, i.e. identifying the individuals affected, measuring their corresponding compensating variations, and aggregating those measures according to a distributional value judgement. The analysis is conducted in a partial equilibrium framework, allowing for direct operational application.

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File URL: http://128.118.178.162/eps/pe/papers/0508/0508008.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0508008.

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Length: 36 pages
Date of creation: 17 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0508008

Note: Type of Document - pdf; pages: 36
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Web page: http://128.118.178.162

Related research

Keywords: accounting prices; shadow prices; shadow pricing; partially traded; traded goods; cost-benefit analysis; project appraisal;

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References

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  1. Dreze, Jean & Stern, Nicholas, 1987. "The theory of cost-benefit analysis," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 14, pages 909-989 Elsevier.
  2. Squire, Lyn, 1989. "Project evaluation in theory and practice," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 21, pages 1093-1137 Elsevier.
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Cited by:
  1. Elio Londero, 2001. "By-Products," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 35-45.
  2. Elio Londero, 2001. "The alleged countercyclical nature of Argentina's exports of manufactures," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(2), pages 151-173.

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