Recovering Hicksian consumer surplus within a collective model: Hausman's method for the household

V. Kerry Smith; George Van Houtven

doi:10.1023/B:EARE.0000029916.05630.89

Recovering Hicksian consumer surplus within a collective model: Hausman's method for the household

V. Kerry Smith, George Van Houtven

Research output: Contribution to journal › Article › peer-review

7 Scopus citations

Abstract

The purpose of this paper is to describe the implications of the collective model of household behavior for the methods used to estimate the economic value of non-marketed environmental resources. After demonstrating how the separability restrictions inherent in the collective model allow individual preference and household income allocation choices to be distinguished, the paper demonstrates how the framework can be used to recover Hicksian consumer surplus. An algebraic example is used to illustrate how the framework can be used in valuing environmental resources.

Original language	English (US)
Pages (from-to)	153-167
Number of pages	15
Journal	Environmental and Resource Economics
Volume	28
Issue number	2
DOIs	https://doi.org/10.1023/B:EARE.0000029916.05630.89
State	Published - Jun 2004
Externally published	Yes

Keywords

benefit estimation
collective model
household behavior

ASJC Scopus subject areas

Economics and Econometrics
Management, Monitoring, Policy and Law

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10.1023/B:EARE.0000029916.05630.89

Cite this

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title = "Recovering Hicksian consumer surplus within a collective model: Hausman's method for the household",

abstract = "The purpose of this paper is to describe the implications of the collective model of household behavior for the methods used to estimate the economic value of non-marketed environmental resources. After demonstrating how the separability restrictions inherent in the collective model allow individual preference and household income allocation choices to be distinguished, the paper demonstrates how the framework can be used to recover Hicksian consumer surplus. An algebraic example is used to illustrate how the framework can be used in valuing environmental resources.",

keywords = "benefit estimation, collective model, household behavior",

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doi = "10.1023/B:EARE.0000029916.05630.89",

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N2 - The purpose of this paper is to describe the implications of the collective model of household behavior for the methods used to estimate the economic value of non-marketed environmental resources. After demonstrating how the separability restrictions inherent in the collective model allow individual preference and household income allocation choices to be distinguished, the paper demonstrates how the framework can be used to recover Hicksian consumer surplus. An algebraic example is used to illustrate how the framework can be used in valuing environmental resources.

AB - The purpose of this paper is to describe the implications of the collective model of household behavior for the methods used to estimate the economic value of non-marketed environmental resources. After demonstrating how the separability restrictions inherent in the collective model allow individual preference and household income allocation choices to be distinguished, the paper demonstrates how the framework can be used to recover Hicksian consumer surplus. An algebraic example is used to illustrate how the framework can be used in valuing environmental resources.

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KW - household behavior

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Recovering Hicksian consumer surplus within a collective model: Hausman's method for the household

Abstract

Keywords

ASJC Scopus subject areas

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