Alternative ways of measuring and decomposing equivalent variation

Fane, George; Ahammad, Helal

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Alternative ways of measuring and decomposing equivalent variation

Date

2003

Authors

Fane, George

Ahammad, Helal

Publisher

Butterworths

Abstract

Two different concepts of 'equivalent variation' have been used to measure the welfare effects of policy changes. One applies to uncompensated changes in which utility can vary, the other to compensated changes in which it is held constant. Harberger [J.