Can weak substitution be rehabilitated?

V. Kerry Smith, Mary F. Evans, H. Spencer Banzhaf, Christine Poulos

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

This paper develops a graphical analysis and an analytical model that demonstrate how weak substitution can be used for non-market valuation. Weak complementarity and weak substitution represent preference restrictions that allow us to develop equivalent price changes to describe quantity or quality changes in non-market goods. The price changes are Hicksian equivalents in that they yield the same utility changes as would the quantity or quality changes. After discussion of several potential applications of weak substitution, the paper develops the parallel between the restriction and recent strategies from modeling differentiated goods.

Original languageEnglish (US)
Pages (from-to)203-221
Number of pages19
JournalEnvironmental and Resource Economics
Volume45
Issue number2
DOIs
StatePublished - Feb 2010

Keywords

  • Non-market valuation
  • Revealed preference
  • Weak substitution

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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    Kerry Smith, V., Evans, M. F., Spencer Banzhaf, H., & Poulos, C. (2010). Can weak substitution be rehabilitated? Environmental and Resource Economics, 45(2), 203-221. https://doi.org/10.1007/s10640-009-9312-6