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Applied Welfare Economics with Discrete Choice Models
Abstract
Economists have been paying increasing attention to the study of situations in which csumers face a discrete rather than a continous set of choices.Such models are potentially very important in evaluating the impact of government programs upon consi.mterwelfare.But very little has been said in general regarding the tools of applied welfare economics in discrete choice situations.This paper shows how the conventional methods of applied welfare economics can be modified to handle such cases.It focuses on the cornputation of the excess burden of taxation, and the evaluation of gua].itychange.The results are applied to stochastic utility models, including the popular cases of prohit and logit analysis.Throughout, the ernp)-asis is on providing rigorous guidelines for carrying out applied work.
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Cites
Sample Selection Bias as a Specification Error
Heckman, J. J. (1979) · Econometrica · doi:10.2307/1912352 · Cited by 28,779
Shadow Prices, Market Wages, and Labor Supply
Heckman, J. (1974) · Econometrica · doi:10.2307/1913937 · Cited by 1,852
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Accessibility evaluation of land-use and transport strategies: Review and research directions
Geurs, K. T., & van Wee, B. (2004) · Journal of Transport Geography · doi:10.1016/j.jtrangeo.2003.10.005 · Cited by 3,353
Conducting Discrete Choice Experiments to Inform Healthcare Decision Making: A User??s Guide
Lancsar, E., & Louviere, J. (2008) · PharmacoEconomics · doi:10.2165/00019053-200826080-00004 · Cited by 1,707
Measuring Accessibility: An Exploration of Issues and Alternatives
Handy, S. L., & Niemeier, D. A. (1997) · Environment and Planning A: Economy and Space · doi:10.1068/a291175 · Cited by 1,643
Quantifying search and switching costs in the US auto insurance industry
Honka, E. (2014) · The RAND Journal of Economics · doi:10.1111/1756-2171.12073 · Cited by 325
Nonparametric Estimation of Exact Consumers Surplus and Deadweight Loss
Hausman, J. A., & Newey, W. K. (1995) · Econometrica · doi:10.2307/2171777 · Cited by 284
Metadata
- Authors
- Small, K. A., & Rosen, H. S.
- Venue
- Econometrica
- Publisher
- JSTOR
- Published
- 1981-01
- Volume
- 49
- Issue
- 1
- Pages
- 105
- ISSN
- 0012-9682 (ISSN-L)
- OpenAlex
- W2890187108
- Cited by
- 1,188
- References
- 2
- FWCI
- 28.74
- Type
- journal article
- Language
- en
- Open access
- closed
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- Small, K. A., & Rosen, H. S. (1981). Applied Welfare Economics with Discrete Choice Models. Econometrica. https://doi.org/10.2307/1911129
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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