✦ LIBER ✦

A simple and efficient method for estimating the magnitude and precision of welfare changes: comment

✍ Scribed by Ian J. Irvine; Professor William A. Sims

Publisher: John Wiley and Sons
Year: 2002
Tongue: English
Weight: 37 KB
Volume: 17
Category: Article
ISSN: 0883-7252
DOI: 10.1002/jae.654

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✦ Synopsis

Abstract

A recent article (Breslaw and Smith, 1995) published in this journal provided an iterative numerical technique for computing the welfare effects of price changes. In this note we take issue with the application used to demonstrate this technique. In particular, we show that the demands used are inappropriate and that the authors incorrectly interpret the precision of the estimates of welfare change. Copyright © 2002 John Wiley & Sons, Ltd.

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