Divergence in alternative Hicksian welfare measures: the case of revealed preference for public amenities

Sudip Chattopadhyay
Additional contact information
Sudip Chattopadhyay: Department of Economics, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132, USA, Postal: Department of Economics, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132, USA

Journal of Applied Econometrics, 2002, vol. 17, issue 6, 641-666

Abstract: This paper investigates the divergence between the two Hicksian welfare measures of non-traded amenity improvement associated with housing. First, the Hicksian surplus measures for amenity changes are analytically developed based on explicit specification of utility structures. A hedonic two-stage approach is then applied to empirically show that, for quantity changes, in contrast to hypothetical markets, divergence in real market is small. The paper also analytically develops expressions for the income and substitution effects and empirically shows that for a given income effect, the greater the substitution effect the smaller the divergence between the two measures. Copyright © 2002 John Wiley & Sons, Ltd.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1002/jae.635 Link to full text; subscription required (text/html)
http://qed.econ.queensu.ca:80/jae/2002-v17.6/ Supporting data files and programs (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jae:japmet:v:17:y:2002:i:6:p:641-666

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

DOI: 10.1002/jae.635

Access Statistics for this article

Journal of Applied Econometrics is currently edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().