On the difference between the compensating and equivalent variations due to a change in an exogenously determined commodity

• 成果类型: Article
• 署名作者: Latham, R
• 署名单位: York University - Canada
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00105-4
• 发表日期: 1999
• 页码: 135-145
• 关键词: compensating and equivalent variations; exogenously determined commodity; conditional; notional

摘要

This paper derives necessary and sufficient conditions for the difference between the compensating and equivalent variations due to a change in an exogenously determined commodity to be positive, zero, or negative. These conditions are expressed both in terms of the forms of the conditional expenditure and indirect utility functions and in terms of the exogenously determined commodity's notional aggregate elasticity of substitution for the other commodities, its notional income elasticity, and its notional expenditure share. This is accomplished without resorting to a Taylor approximation and the consideration of bounds. (C) 1999 Elsevier Science S.A. All rights reserved.