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The Theory of Welfare Cost Measurement

Authors: Hause, John C;

The Theory of Welfare Cost Measurement

Abstract

Although welfare change measurements based on consumers' surplus concepts are widely employed in empirical studies, economists have been unable to achieve a satisfactory professional consensus on the theoretical basis, the role of approximations, and the appropriate scope and interpretation of such measurements. This paper attempts to provide a reasonably precise and comprehensive statement of the central ideas, techniques, and formulas that underlie current welfare change measurement. Traditional consumers' surplus techniques are replaced by the expenditures function, since the latter provides a rigorous theoretical resolution to defects of consumers' surplus in analyzing income effects. The paper also attempts to clarify several issues in dealing with simple intertemporal comparisons.

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    popularity
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    influence
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
38
Average
Top 10%
Top 10%
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