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Welfare Measurement in Single and Multimarket Models: Theory and Application
Author(s) -
Brännlund Runar,
Kriström Bengt
Publication year - 1996
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 - 10.2307/1243787
Subject(s) - welfare , economics , key (lock) , partial equilibrium , commission , econometrics , microeconomics , european commission , public economics , general equilibrium theory , international economics , computer science , market economy , european union , computer security , finance
In this paper we provide an analysis of tax reforms along the lines of the multimarket welfare measurement techniques suggested by Just, Hueth, and Schmitz. A key purpose of our analysis is to shed light on the approximating features of partial equilibrium models. We derive a result on the difference between single and multimarket welfare measurement, showing how the difference boils down to a set of key parameters. We use our approach to analyze a proposal put forward by the Swedish Commission of Environmental Charges regarding chlorine emissions from the Swedish pulp and paper industry.