Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203411
Authors: 
Fernandez, Cheryl Joy
Raitzer, David
Ginting, Edimon
Year of Publication: 
2019
Series/Report no.: 
ADB Economics Working Paper Series 569
Abstract: 
Economic analysis often faces challenges in the valuation of nonmarket goods and services. The traditional set of nonmarket valuation tools for measuring Marshallian economic surplus has limitations related to potential bias in stated preferences and endogeneity of nonmarket amenity placement in revealed preference studies. The life satisfaction approach offers a Hicksian compensating variationbased alternative, which uses self-reported subjective well-being to calculate the marginal rate of substitution of income for nonmarket amenities or services. The conceptual basis for the approach is explained and illustrated with an example from Iloilo, Philippines. Recommendations are offered for future application of the technique in the economic analysis of investment projects.
Subjects: 
economic analysis
life satisfaction
natural disasters
Philippines
valuation
well-being
JEL: 
D61
D69
D90
H40
Q51
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
396.16 kB





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