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Consumer's Surplus Revisited
Author(s) -
Shonkwiler J. S.
Publication year - 1991
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242724
Subject(s) - relation (database) , economic surplus , function (biology) , work (physics) , differential (mechanical device) , mathematical economics , welfare , economics , consumer demand , differential equation , econometrics , mathematical optimization , computer science , mathematics , microeconomics , mathematical analysis , physics , thermodynamics , database , evolutionary biology , market economy , biology
A technique for approximating welfare measures using knowledge of the Marshallian demand relation is developed and compared numerically to the true measures and other approximations. The technique does not rely on the solution of differential equations and is easily illustrated graphically. The technique should be useful as a pedagogic device and applicable in empirical work when derivation of the indirect utility function is burdensome.