Evaluation of Nonmarket Goods: Recovering Unconditional Preferences
Udo Ebert ()
American Journal of Agricultural Economics, 1998, vol. 80, issue 2, 241-254
A new approach is proposed for the evaluation of nonmarket goods, starting from a complete or incomplete (conditional) demand system for market goods which is observable and depends on nonmarket goods. This information is not sufficient to recover the underlying preference ordering of the representative consumer. The central idea is to employ additional marginal willingness to pay functions for the nonmarket goods. Since they can be estimated either together with the demand system or in a separate step they are less arbitrary than the assumptions or hypotheses usually made. If the entire system is (weakly) integrable the underlying ordering and appropriate welfare measures can be derived. In this article I investigate the relationship between conditional and unconditional demand systems, present sufficient conditions for (weak) integrability, and demonstrate the practicability of the procedure proposed by means of three examples. Copyright 1998, Oxford University Press.
References: Add references at CitEc
Citations View citations in EconPapers (21) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:oup:ajagec:v:80:y:1998:i:2:p:241-254
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Series data maintained by Oxford University Press ().