The Welfare Economics of Public Policy : A Practical Approach to Project and Policy Evaluation

This outstanding text, a follow-up to the authors’ award-winning 1982 text, provides a thorough treatment of economic welfare theory and develops a complete theoretical and empirical framework for applied project and policy evaluation. The authors illustrate how this theory can be used to develop policy analysis from both theory and estimation in a variety of areas including: international trade, the economics of technological change, agricultural economics, the economics of information, environmental economics, and the economics of extractive and renewable natural resources. Building on willingness-to-pay (WTP) measures as the foundation for applied welfare economics, the authors develop measures for firms and households where households are viewed as both consumers and owner/sellers of resources. Possibilities are presented for (1) approximating WTP with consumer surplus, (2) measuring WTP exactly subject to errors in existing econometric work, and (3) using duality theory to specify econometric equations consistent with theory. This outstanding text, a follow-up to the authors' award-winning 1982 text, provides a thorough treatment of economic welfare theory and develops a complete theoretical and empirical framework for applied project and policy evaluation. The authors illustrate how this theory can be used to develop policy analysis from both theory and estimation in a variety of areas international trade, the economics of technological change, agricultural economics, the economics of information, environmental economics, and the economics of extractive and renewable natural resources. Building on willingness-to-pay (WTP) measures as the foundation for applied welfare economics, the authors develop measures for firms and households where households are viewed as both consumers and owner/sellers of resources. Possibilities are presented for (1) approximating WTP with consumer surplus, (2) measuring WTP exactly subject to errors in existing econometric work, and (3) using duality theory to specify econometric equations consistent with theory. Later chapters cover specific areas of welfare measurement under imperfect competition, uncertainty, incomplete information, externalities, and dynamic considerations. Applications are considered explicitly for policy issues related to information, international trade, the environment, agriculture, and other natural resource issues. The Welfare Economics of Public Policy is ideal for graduate and undergraduate courses in applied welfare economics, public policy, agricultural policy, and environmental economics and provides an essential reference for practitioners of applied welfare economics. Preface 1. Introduction 2. Pareto Optimality and the Pareto Criterion 3. The Compensation Principle and the Welfare Function 4. Welfare Measurement for the Producer Appendix to Chapter 4: Alternative Measures of Producer Welfare in Factor and Product Markets 5. Consumer Surplus and Consumer Welfare Appendix to Chapter 5: Nonuniqueness of Consumer Surplus 6. Willingness to Pay and Consumer Welfare Appendix to Chapter 6: Welfare Measurement for Consumers 7. Factor Supply and Factor Owner Welfare Appendix to Chapter 7: Welfare Measurement for Factor Owners 8. Aggregation and Economic Welfare Analysis of Market-Oriented Policies Appendix to Chapter 8: Measurement of Aggregate Market Welfare 9. Multimarket Analysis and General Equilibrium Considerations Appendix to Chapter 9: Welfare Measures for Multimarket Equilibrium 10. The Welfare Economics of Market Structure with Applications to International Trade 11. The Welfare Economics of Information with Applications to Advertising and Information Policy Appendix to Chapter 11: Measuring the Welfare Effects of Quality and Information 12. Stochastic Welfare Economics with Applications to Agricultural Policy Analysis Appendix to Chapter 12: Producer Welfare Measurement under Risk 13. Nonmarket Welfare Measurement with Applications to Environmental Economic Policy 14. Intertemporal Considerations in Cost-Benefit Analysis with Applications to Natural Resource Economics Appendix to Chapter 14: Intertemporal Welfare Analysis with Investment in Producer Capital and Consumer Durables 15. Conclusions and Further Considerations Bibliography Index Contents......Page 6 Preface......Page 16 1. Introduction......Page 20 2. Pareto optimality and the Pareto criterion......Page 33 3. The compensation principle and the welfare function......Page 51 4. Welfare measurement for the producer......Page 68 Appendix to Chapter 4: Alternative measures of producer welfare in factor and product markets......Page 94 5. Consumer surplus and consumer welfare......Page 117 Appendix to Chapter 5: Nonuniqueness of consumer surplus......Page 132 6. Willingness to pay and consumer welfare......Page 142 Appendix to Chapter 6: Welfare measurement for consumers......Page 176 7. Factor supply and factor owner welfare......Page 202 Appendix to Chapter 7: Welfare measurement for factor owners......Page 235 8. Aggregation and economic welfare analysis of market-oriented policies......Page 272 Appendix to Chapter 8: Measurement of aggregate market welfare......Page 313 9. Multimarket analysis and general equilibrium considerations......Page 330 Appendix to Chapter 9: Welfare measures for multimarket equilibrium......Page 370 10. The welfare economics of market structure with applications to international trade......Page 394 11. The welfare economics of information with applications to advertising and information policy......Page 436 Appendix to Chapter 11: Measuring the welfare e•ects of quality and information......Page 470 12. Stochastic welfare economics with applications to agricultural policy analysis......Page 486 Appendix to Chapter 12: Producer welfare measurement under risk......Page 537 13. Nonmarket welfare measurement with applications to environmental economic policy......Page 546 14. Intertemporal considerations in cost–benefit analysis with applications to natural resource economics......Page 591 Appendix to Chapter 14: Intertemporal welfare analysis with investment in producer capital and consumer durables......Page 637 15. Conclusions and further considerations......Page 658 Bibliography......Page 669 Name index......Page 692 Subject index......Page 697 This outstanding text, a follow-up to the authors'award-winning 1982 text, provides a thorough treatment of economic welfare theory and develops a complete theoretical and empirical framework for applied project and policy evaluation. The authors illustrate how this theory can be used to develop policy analysis from both theory and estimation in a variety of areas including: international trade, the economics of technological change, agricultural economics, the economics of information, environmental economics, and the economics of extractive and renewable natural resources.Building on willingness-to-pay (WTP) measures as the foundation for applied welfare economics, the authors develop measures for firms and households where households are viewed as both consumers and owner/sellers of resources. Possibilities are presented for (1) approximating WTP with consumer surplus, (2) measuring WTP exactly subject to errors in existing econometric work, and (3) using duality theory to specify econometric equations consistent with theory.Later chapters cover specific areas of welfare measurement under imperfect competition, uncertainty, incomplete information, externalities, and dynamic considerations. Applications are considered explicitly for policy issues related to information, international trade, the environment, agriculture, and other natural resource issues.The Welfare Economics of Public Policy is ideal for graduate and undergraduate courses in applied welfare economics, public policy, agricultural policy, and environmental economics and provides an essential reference for practitioners of applied welfare economics.

building On Willingness-to-pay (wtp) Measures As The Foundation For Applied Welfare Economics, Just (u. Of Maryland), Hueth (u. Of Maryland And Universidad De Los Andes, Colombia) And Schmitz (u. Of Florida And U. Of California Berkeley) Develop Measures For Firms And Households Where Households Are Viewed As Both Consumers And Owner/sellers Of Resources. They Present Possibilities For Approximating Wtp With Consumer Surplus, Measuring Wtp Exactly (subject To Errors In Existing Econometric Work), And Using Duality Theory To Specify Econometric Equations Consistent With Theory. Several Chapters Cover Specific Areas Of Welfare Measurement Under Imperfect Competition, Uncertainty, Incomplete Information, Externalities And Dynamic Considerations. Annotation ©2004 Book News, Inc., Portland, Or

"This text provides a thorough treatment of economic welfare theory and develops a complete theoretical and empirical framework for applied project and policy evaluation. The authors illustrate how this theory can be used to develop policy analysis from both theory and estimation in a variety of areas including: international trade, the economics of technological change, agricultural economics, the economics of information, environmental economics, and the economics of extractive and renewable natural resources.". "The Welfare Economics of Public Policy is ideal for graduate and undergraduate courses in applied welfare economics, public policy, agricultural policy, and environmental economics and provides an essential reference for practitioners of applied welfare economics."--BOOK JACKET.