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Consumer Welfare Effects of Quantity Changes in Demand

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  • Huang, Kuo S.

Abstract

Information about consumer welfare effects associated with quantity changes in demand is important for agricultural and food policy decision-makers because many policy options are directly related to controlling supplies as a means to stabilize or raise commodity prices and farmers' income. A new method is developed to measure the consumer welfare effects by using the estimates of an inverse demand system and a modified quantity-adjusted Malmquist index to represent the efficiency in quantity metric welfare. The methodology is validated by applying it to a U.S. inverse food demand system consisting of 13 food groups and a nonfood sector.

Suggested Citation

  • Huang, Kuo S., 2013. "Consumer Welfare Effects of Quantity Changes in Demand," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(2), pages 217-227, May.
    • Handle: RePEc:cup:jagaec:v:45:y:2013:i:02:p:217-227_00
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    References listed on IDEAS

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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