Functional forms, exogenous shifts, and economic surplus changes

Zhao, X. and Mullen, J.D. and Griffith, G.R. (1997) Functional forms, exogenous shifts, and economic surplus changes. American Journal of Agricultural Economics, 79 (4). pp. 1243-1251.

[img] PDF - Published Version
Restricted to ICRISAT researchers only

Abstract

Conditions for exact welfare measures in equilibrium displacement modeling are examined. These relate to the functional form of supply and demand, the nature of the exogenous shift, and the definition of percentage changes. Approximation errors when these conditions are not met in empirical applications are investigated and analytical expressions for the errors derived. Significant errors are possible when a proportional shift is assumed. The assumptions underlying Alston and Wohlgenant's empirical findings are identified. The restriction that supply must be elastic is shown to be unnecessary

Item Type: Article
Uncontrolled Keywords: Economic surplus, Equilibrium displacement modeling, Exogenous shift, Functional form
Author Affiliation: University of New England, Armidale New South Wale Agriculture, Orange Armidale, Australia
Subjects: Social Sciences > Agricultural Economics
Divisions: General
Depositing User: Ms Ishrath Durafsha
Date Deposited: 07 Feb 2014 08:41
Last Modified: 07 Feb 2014 08:41
Official URL: http://dx.doi.org/10.2307/1244281
URI: http://eprints.icrisat.ac.in/id/eprint/12260

Actions (login required)

View Item View Item
EPrints Logo
eprints is powered by EPrints 3 which is developed by the School of Electronics and Computer Science at the University of Southampton. More information and software credits.