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Computation of the compensating variation within a random utility model using GAUSS software

Author

Listed:
  • Marilena Locatelli
  • Steinar Strøm

Abstract

In this paper we describe a software instrument, implemented with GAUSS, to evaluate a tax reform in terms of change in household welfare, and in particular in term of Compensating Variation (CV), within a random utility model. The program flow and the program list with comments are supplied.

Suggested Citation

  • Marilena Locatelli & Steinar Strøm, 2006. "Computation of the compensating variation within a random utility model using GAUSS software," CHILD Working Papers wp02_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    • Handle: RePEc:wpc:wplist:wp02_06
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    File URL: http://www.child.carloalberto.org/images/wp/child02_2006.pdf
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    Citations

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    Cited by:

    1. John K. Dagsvik & Marilena Locatelli & Steinar Strøm, 2009. "Tax Reform, Sector‐specific Labor Supply and Welfare Effects," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(2), pages 299-321, June.

    More about this item

    Keywords

    Compensating variation; computing welfare change; GAUSS application; tax system evaluation;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics

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