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Alternative Measures of Benefit for Nonmarket Goods Which are Substitutes or Complements for Market Goods

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  • Loehman, Edna T.

Abstract

Nonmarket goods include quality aspects of market goods and public goods which may be substitutes or complements for private goods. Traditional methods of measuring benefits of exogenous changes in nonmarket goods are based on Marshallian demand: change in spending on market goods or change in consumer surplus. More recently, willingness to pay and accept have been used as welfare measures . This paper defines the relationships among alternative measures of welfare for perfect substitutes, imperfect substitutes, and complements. Examples are given to demonstrate how to obtain exact measures from systems of market good demand equations .

Suggested Citation

  • Loehman, Edna T., 1991. "Alternative Measures of Benefit for Nonmarket Goods Which are Substitutes or Complements for Market Goods," Working Papers 115913, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    • Handle: RePEc:ags:rpspwp:115913
    DOI: 10.22004/ag.econ.115913
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Carson, Richard & Flores, Nicholas E. & Hanemann, W. Michael, 1998. "Sequencing and Valuing Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 314-323, November.
    2. Steahr, Thomas E. & Roberts, Tanya, 1993. "Microbial Foodborne Disease: Hospitalizations, Medical Costs and Potential Demand for Safer Food," Working Papers 116110, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Langan, Glenn E. & Cotterill, Ronald W., 1994. "Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks," Working Papers 116168, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. Ding, John Y. & Caswell, Julie A. & Zhou, Furen, 1997. "Relatedness And Performance: A Reexamination Of The Diversification-Performance Link," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), pages 1-8, February.
    5. Bagnara, Gian Luca, 1996. "BRAND NAME AND ADDED VALUE IN HORTICULTURAL PRODUCTS: ANALYSIS OF CONSUMER PERCEPTION; Proceedings of the Fifth Joint Conference on Agriculture, Food, and the Environment, June 17-18, 1996, Padova, It," Working Papers 14458, University of Minnesota, Center for International Food and Agricultural Policy.
    6. Cotterill, Ronald W. & Pinkerton, Don C., 1993. "Motives for Mergers in Food Manufacturing," Working Papers 116111, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    7. Ding, John Y. & Caswell, Julie A. & Rogers, Richard T., 1993. "Restructuring's Effect on Related and Unrelated Diversification Among Top Food Manufacturing Firms in the 1980s," Working Papers 116118, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    8. Cotterill, Ronald W. & Salih, Hachim M., 1992. "Testing For Risk Premiums In The Wheat-Flour Subsector," Working Papers 116109, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    9. Caswell, Julie A. & Kleinschmit, Jaana K., 1993. "Economic Criteria for Settling Federalism Disputes with an Application to Food Safety Regulation," Working Papers 116114, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    10. Wen, Hong & Haller, Lawrence E., 1994. "Price Determination in the Bottled Water Industry: A Case Study of Poland Spring," Working Papers 116165, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    11. Bhuyan, Sanjib & Cotterill, Ronald W., 1994. "Countervailing Power and Seller Performance in U.S. Food and Tobacco Manufacturing Industries," Working Papers 116163, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

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