A Welfare Decomposition in Quasi-Linear Economies
We propose a decomposition of social welfare when consumers' preferences are described by quasi-linear utility functions. In our decomposition, social welfare is expressed as the sum of consumers' gross utilities and trade surplus of non-numeraire goods, whose consumption enters utility functions non-linearly. This decomposition is useful especially when we assess the impact of trade liberalization on individual countries. We propose a decomposition of social welfare when consumers' preferences are described by quasi-linear utility functions. In our decomposition, social welfare is expressed as the sum of consumers' gross utilities and trade surplus of non-numeraire goods, whose consumption enters utility functions non-linearly. This decomposition is useful especially when we assess the impact of trade liberalization on individual countries.
|Date of creation:||27 Aug 2003|
|Date of revision:|
|Publication status:||Published, Economics Letters 85, 29-34, 2004.|
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- Kyle Bagwell & Robert W. Staiger, 1997.
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5932, National Bureau of Economic Research, Inc.
- Bagwell, Kyle & Staiger, Robert W., 2001. "Reciprocity, non-discrimination and preferential agreements in the multilateral trading system," European Journal of Political Economy, Elsevier, vol. 17(2), pages 281-325, June.
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2003.55, Fondazione Eni Enrico Mattei.
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