Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/91540 
Year of Publication: 
2012
Series/Report no.: 
IFS Working Papers No. W12/14
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. These 'i-bounds' generalize earlier results of Blundell, Browning and Crawford (2008). We show that their e-bounds are sharp under the Weak Axiom of Revealed Preference (WARP). They do not require transitivity. The new i-bounds are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures. The new bounds on welfare measures are shown to be operationalized through algorithms that are easy to implement.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
363.37 kB





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