Can Weak Substitution be Rehabilitated? / V. Kerry Smith, Mary F. Evans, H. Spencer Banzhaf, Christine Poulos.

By:

Smith, V. Kerry

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w13903.Publication details: Cambridge, Mass. National Bureau of Economic Research 2008.Description: 1 online resource: illustrations (black and white)Subject(s):

Q51 - Valuation of Environmental Effects

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This paper develops a graphical analysis and an analytical model that demonstrate how weak substitution can be used for non-market valuation. Both weak complementarity and weak substitution can be evaluated as restrictions that allow quantity or quality changes in non-market goods to be described as price changes that yield equivalent changes in individual well being. They are Hicksian equivalents in that the price changes yield the same utility changes as would the quantity or quality changes. After discussion of several potential applications of weak substitution, the paper develops the parallel between the restriction and recent strategies from modeling differentiated goods.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w13903 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w13900 A Quantile-based Test of Protection for Sale Model /	nber w13901 Can Exchange Rates Forecast Commodity Prices? /	nber w13902 Sterilization, Monetary Policy, and Global Financial Integration /	nber w13903 Can Weak Substitution be Rehabilitated? /	nber w13904 Information Acquisition and Under-Diversification /	nber w13905 Is There Dowry Inflation in South Asia? /	nber w13906 Current Account Dynamics and Monetary Policy /	Next

March 2008.

This paper develops a graphical analysis and an analytical model that demonstrate how weak substitution can be used for non-market valuation. Both weak complementarity and weak substitution can be evaluated as restrictions that allow quantity or quality changes in non-market goods to be described as price changes that yield equivalent changes in individual well being. They are Hicksian equivalents in that the price changes yield the same utility changes as would the quantity or quality changes. After discussion of several potential applications of weak substitution, the paper develops the parallel between the restriction and recent strategies from modeling differentiated goods.