Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192281 
Year of Publication: 
2001
Series/Report no.: 
Discussion Papers No. 299
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
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.
Subjects: 
Random expenditure function
Compensated choice probabilities
Compensating variation.
JEL: 
C25
D61
Document Type: 
Working Paper

Files in This Item:
File
Size
107.1 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.