Applied Welfare Economics with Discrete Choice Models / Harvey S. Rosen, Kenneth A. Small.

Format:

Book

Author/Creator:

Rosen, Harvey S.

Contributor:

National Bureau of Economic Research.

Small, Kenneth A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0319.

NBER working paper series no. w0319

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1979.

Summary:

Economists have been paying increasing attention to the study of situations in which consumers face a discrete rather than a continuous set of choices. Such models are potentially very important in evaluating the impact of government programs upon consumer welfare. But very little has been said in general regarding the tools of applied welfare economics indiscrete choice situations. This paper shows how the conventional methods of applied welfare economics can be modified to handle such cases. It focuses on the computation of the excess burden of taxation, and the evaluation of quality change. The results are applied to stochastic utility models, including the popular cases of probit and logit analysis. Throughout, the emphasis is on providing rigorous guidelines for carrying out applied work.

Notes:

Print version record

February 1979.