Research Paper No. 756

EXACT WELFARE MEASUREMENT USING MARSHALLIAN DEMAND FUNCTIONS

by

JOHN CREEDY 

JULY 2000

Department of Economics. University of Melbourne. Melbourne Victoria 3010 Australia

 

CONTENTS

  1. Introduction
  2. Welfare Changes and Excess Burdens
    1. Welfare Changes
    2. Excess Burden Concepts

  3. From Marshallian to Hicksian Demands
    1. The Problem of Integration
    2. The Integrability Conditions
    3. Vartia's Numerical Method of Integration

  4. Numerical Examples
    1. A Single Good and Linear Demand Function
    2. Two Goods

  5. Conclusions
    1.  

       

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