Radner's cost-benefit analysis in the small: An equivalence result

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Abstract

I show that local changes in five welfare measures are equal: a measure proposed by Radner (1993); consumers' surplus; the Slutsky change in real wealth; the Divisia quantity index, and Debreu's (1951) coefficient of resource utilization (the last two rescaled in units of a numeraire good).

Original languageEnglish (US)
Pages (from-to)570-572
Number of pages3
JournalEconomics Letters
Volume120
Issue number3
DOIs
StatePublished - Jul 24 2013

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Keywords

  • Coefficient of resource utilization
  • Consumers' surplus
  • Divisia index
  • Local cost-benefit analysis
  • Slutsky compensation

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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