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Measurement of Welfare Change: A Review

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  • Zuhair A. Hassan

Abstract

Three measure commonly used to evaluate the consumer welfare implications of a policy change are reviewed. The notion of consumer surplus is dealt with first, followed by an assessment of the concepts of compensating variation and equivalent variation. The relationships among the three concepts are also considered.

Suggested Citation

  • Zuhair A. Hassan, 1995. "Measurement of Welfare Change: A Review," Center for Agricultural and Rural Development (CARD) Publications 95-wp141, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:95-wp141
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    References listed on IDEAS

    as
    1. McKenzie,George W., 1983. "Measuring Economic Welfare," Cambridge Books, Cambridge University Press, number 9780521248624, September.
    2. Van Kooten, G. C., 1987. "The Economic Impacts on Consumers of Government Intervention in the Poultry and Egg Sectors: A Comparison of Alternative Welfare Measures," Working Papers 243873, Agriculture and Agri-Food Canada.
    3. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-270, March.
    4. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-647, June.
    5. 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.
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    Cited by:

    1. Wang, Lijun & Zha, Donglan & O’Mahony, Tadhg & Zhou, Dequn, 2023. "Energy efficiency lags and welfare boons: Understanding the rebound and welfare effects through China's urban households," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).

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