Abstract
Schlee (2013) asserts the equivalence between a local welfare measure proposed by Radner (1993) and the derivatives of six other welfare measures. The asserted equivalence between Radner's measure and one of these – Debreu's (1951) coefficient of resource utilization – is false. What is the case is that the other six local welfare measures are equivalent to a modification of Debreu's coefficient that applies to economies with distortions.
Original language | English (US) |
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Pages (from-to) | 31-33 |
Number of pages | 3 |
Journal | Economics Letters |
Volume | 172 |
DOIs | |
State | Published - Nov 2018 |
Keywords
- Benefit function
- Coefficient of resource utilization
- Local cost–benefit analysis
ASJC Scopus subject areas
- Finance
- Economics and Econometrics