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The Magnitude of Welfare Change: Consumer Surplus

In: Welfare Economics

Author

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  • Yew-Kwang Ng

    (Monash University)

Abstract

The discussion of the magnitude of welfare change in this chapter centres on the concept of consumer surplus associated with a price change. But some of the measures of consumer surplus - such as compensating variation, equivalent variation and our proposed measure, marginal-dollar equivalent (see the appendix to this chapter) — can also be used to measure welfare changes that are associated with other changes.

Suggested Citation

  • Yew-Kwang Ng, 2004. "The Magnitude of Welfare Change: Consumer Surplus," Palgrave Macmillan Books, in: Welfare Economics, chapter 4, pages 65-91, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-4406-1_4
    DOI: 10.1057/9781403944061_4
    as

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