Incomplete Demand Systems, Corner Solutions, and Welfare Measurement

@article{Haefen2010IncompleteDS,
  title={Incomplete Demand Systems, Corner Solutions, and Welfare Measurement},
  author={Roger H. von Haefen},
  journal={Agricultural and Resource Economics Review},
  year={2010},
  volume={39},
  pages={22-36}
}
  • Roger H. von Haefen
  • Published 2010
  • Economics
  • Agricultural and Resource Economics Review
  • This paper demonstrates how corner solutions raise difficulties for the specification, estimation, and use of incomplete demand systems for welfare measurement with disaggregate consumption data, as is common in the outdoor recreation literature. A simple analytical model of consumer behavior is used to elucidate the potential biases for welfare measurement arising from modeling the demand for M goods as a function of M + N prices (N > 1) and income when individuals do not consume all goods in… CONTINUE READING
    11 Citations

    Tables from this paper.

    Multiple discrete-continuous choice models: a reflective analysis and a prospective view
    • 5
    • PDF

    References

    SHOWING 1-10 OF 24 REFERENCES
    Welfare Effects, Omitted Variables, and the Extent of the Market
    • 22
    A Dual Approach to Modeling Corner Solutions in Recreation Demand
    • 32
    • PDF
    The Necessity for Substitute Prices Recreation Demand Analyses
    • 76
    A note on the welfare effects of omitting substitute prices and qualities from travel cost models.
    • 29
    The Theory of Household Behaviour under Rationing
    • 588
    • PDF
    The Dual Structure of Incomplete Demand Systems
    • 141
    • PDF