Abstract
We use line integral theory to lay out in a more general theoretical framework the conditions under which it is possible to measure with market data the welfare effects of a change in a nonmarket good. We present in detail a numerical method of measuring the value of nonmarket goods using market data, under either weak neutrality or weak complementarity. Our numerical method is more flexible than the existing analytical method because it can be used with any well-behaved Marshallian demand function, and can be used even when the willig condition does not hold.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 961-973 |
| Number of pages | 13 |
| Journal | American Journal of Agricultural Economics |
| Volume | 88 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 2006 |
| Externally published | Yes |
Keywords
- Nonmarket good
- Numerical methods
- Weak complementarity
- Weak neutrality
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics