IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v12y1984i4p473-486.html
   My bibliography  Save this article

Cardinal vs. Characteristic Indices of Preference for Applied Welfare Economics

Author

Listed:
  • Dale O. Stahl II

    (Duke University)

Abstract

The concept of cardinality is defined for a binary index of preference. The qualifications on the cardinality of the compensating and equivalent variations are examined in detail. It is argued that a characteristic index, such as the sign of the monotonic variation of consumer surplus, is adequate for most practical applications.

Suggested Citation

  • Dale O. Stahl II, 1984. "Cardinal vs. Characteristic Indices of Preference for Applied Welfare Economics," Public Finance Review, , vol. 12(4), pages 473-486, October.
    • Handle: RePEc:sae:pubfin:v:12:y:1984:i:4:p:473-486
    DOI: 10.1177/109114218401200405
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114218401200405
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114218401200405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    2. J. R. Hicks, 1942. "Consumers' Surplus and Index-Numbers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 126-137.
    3. Hause, John C, 1975. "The Theory of Welfare Cost Measurement," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1145-1182, December.
    4. Vartia, Yrjo O, 1983. "Efficient Methods of Measuring Welfare Change and Compensated Income in Terms of Ordinary Demand Functions," Econometrica, Econometric Society, vol. 51(1), pages 79-98, January.
    5. Zajac, E. E., 1979. "Dupuit-marshall consumer's surplus, utility, and revealed preference," Journal of Economic Theory, Elsevier, vol. 20(2), pages 260-270, April.
    6. Chipman, John S & Moore, James C, 1980. "Compensating Variation, Consumer's Surplus, and Welfare," American Economic Review, American Economic Association, vol. 70(5), pages 933-949, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Ali Khan & Edward E. Schlee, 2016. "On Lionel McKenzie's 1957 intrusion into 20th‐century demand theory," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 589-636, May.
    2. Keir G. Armstrong, 2004. "A Graphical Depiction of Hicksian Partial-Equilibrium Welfare Analysis," Carleton Economic Papers 04-09, Carleton University, Department of Economics.
    3. Arjan Ruijs, 2007. "Welfare and Distribution Effects of Water Pricing Policies," Working Papers 2007.92, Fondazione Eni Enrico Mattei.
    4. Hines, James Jr. & Hlinko, John C. & Lubke, Theodore J. F., 1995. "From each according to his surplus: Equi-proportionate sharing of commodity tax burdens," Journal of Public Economics, Elsevier, vol. 58(3), pages 417-428, November.
    5. Dumagan, Jesus C. & Mount, Timothy D., 1997. "Approximating compensated income from ordinary demand functions1," Economics Letters, Elsevier, vol. 55(2), pages 191-201, August.
    6. Pascal Lavergne & Vincent Réquilllart & Michel Simioni, 1998. "Pertes de bien-être et pouvoir de marché dans l'agro-alimentaire français," Économie et Prévision, Programme National Persée, vol. 135(4), pages 77-86.
    7. Robledo, Julio R. & Wagener, Andreas, 2007. "No spurious welfare gains from taxation: A further argument for the equivalent variation," Economics Letters, Elsevier, vol. 96(3), pages 325-330, September.
    8. V. Smith & Mary Evans & H. Banzhaf & Christine Poulos, 2010. "Can Weak Substitution be Rehabilitated?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 203-221, February.
    9. Just, Richard E. & Gilligan, Daniel O., 1998. "Compensating Variation Without Apology? Willingness-To-Pay And The Failure Of Integrability," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20814, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Stefan Hoderlein & Anne Vanhems, 2018. "Estimating the distribution of welfare effects using quantiles," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(1), pages 52-72, January.
    11. Abdelkrim Araar & Paolo Verme, 2019. "Prices and Welfare," Springer Books, Springer, number 978-3-030-17423-1, June.
    12. Daniel McFadden, 2014. "The new science of pleasure: consumer choice behavior and the measurement of well-being," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 2, pages 7-48, Edward Elgar Publishing.
    13. Ruijs, Arjan, 2007. "Welfare and Distribution Effects of Water Pricing Policies," Natural Resources Management Working Papers 7441, Fondazione Eni Enrico Mattei (FEEM).
    14. Paul S. Koh, 2024. "Merger Analysis with Latent Price," Papers 2404.07684, arXiv.org, revised Jul 2024.
    15. Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
    16. Hurwicz, Leonid, 1995. "What is the Coase Theorem?," Japan and the World Economy, Elsevier, vol. 7(1), pages 49-74, May.
    17. Neill, Jon R., 2022. "Using consumer’s surplus to bound willingness to pay for non-market goods," Resource and Energy Economics, Elsevier, vol. 67(C).
    18. David S. Bullock & Philip Garcia & Kie‐Yup Shin, 2005. "Measuring producer welfare under output price uncertainty and risk non‐neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21, March.
    19. Forbush, Marie Leigh & Gum, Russell & Mertin, William E. & Cory, Dennis & Weisz, Reuben N. & Teigen, Llyod, 1980. "Impacts On Consumers: Welfare Economics In The Multiproduct Case," Economics Statistics and Cooperative Services (ESCS) Reports 279727, United States Department of Agriculture, Economic Research Service.
    20. Daniel L. McFadden, 2013. "The New Science of Pleasure," NBER Working Papers 18687, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:12:y:1984:i:4:p:473-486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.