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

V. Kerry Smith, George Van Houtven

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)153-167
Number of pages15
JournalEnvironmental and Resource Economics
Volume28
Issue number2
DOIs
StatePublished - Jun 2004

Keywords

  • benefit estimation
  • collective model
  • household behavior

ASJC Scopus subject areas

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

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