Separability, partial demand systems, and consumer's surplus measures


Journal article


W. Michael Hanemann, Edward R. Morey
Journal of Environmental Economics and Management, vol. 18(3), 1992, pp. 55-67

DOI: https://www.sciencedirect.com/science/article/abs/pii/009506969290031Q?via%3Dihub

Semantic Scholar DOI
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APA   Click to copy
Hanemann, W. M., & Morey, E. R. (1992). Separability, partial demand systems, and consumer's surplus measures. Journal of Environmental Economics and Management, 18(3), 55–67. https://doi.org/https://www.sciencedirect.com/science/article/abs/pii/009506969290031Q?via%3Dihub


Chicago/Turabian   Click to copy
Hanemann, W. Michael, and Edward R. Morey. “Separability, Partial Demand Systems, and Consumer's Surplus Measures.” Journal of Environmental Economics and Management 18, no. 3 (1992): 55–67.


MLA   Click to copy
Hanemann, W. Michael, and Edward R. Morey. “Separability, Partial Demand Systems, and Consumer's Surplus Measures.” Journal of Environmental Economics and Management, vol. 18, no. 3, 1992, pp. 55–67, doi:https://www.sciencedirect.com/science/article/abs/pii/009506969290031Q?via%3Dihub.


BibTeX   Click to copy

@article{w1992a,
  title = {Separability, partial demand systems, and consumer's surplus measures},
  year = {1992},
  issue = {3},
  journal = {Journal of Environmental Economics and Management},
  pages = {55-67},
  volume = {18},
  doi = {https://www.sciencedirect.com/science/article/abs/pii/009506969290031Q?via%3Dihub},
  author = {Hanemann, W. Michael and Morey, Edward R.}
}

Abstract: In practice, complete demand systems are not estimated. Rather, either an incomplete demand system is estimated, or separability is invoked and a partial demand system is estimated. This paper considers the relationship between the conventional compensating variation (equivalent variation) and the corresponding welfare measure that can be derived from a partial demand system and the current budget allocation to the separable group. Even assuming the separability assumption invoked is appropriate, these partial measures provide, in general, only a limited amount of information about the compensating variation and no information about the equivalent variation. Great care is therefore needed when using partial welfare measures to evaluate policy.




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