Discussion Papers No. 299
Compensated variation in random utility models
In this paper we introduce the notion of random expenditure function and derive the distribution of the expenditure function and corresponding compensated choice probabilities in the general case when the (random) utilities are nonlinear in income. We also derive formulae for expenditure and choice under price (policy) changes conditional on the initial utility level. This is of particular interest for welfare measurement because it enables the researcher to analyze the distribution of Compensating variation.
Om publikasjonen
- Tittel
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Compensated variation in random utility models
- Ansvarlig
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John K. Dagsvik
- Serie og -nummer
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Discussion Papers No. 299
- Utgiver
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Statistisk sentralbyrå
- Emne
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Discussion Papers
- Antall sider
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23
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
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