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dc.contributor.authorDagsvik, John K.
dc.contributor.authorKarlström, Anders
dc.date.accessioned2012-03-15T13:44:43Z
dc.date.available2012-03-15T13:44:43Z
dc.date.issued2005
dc.identifier.citationReview of Economic Studies, (2005) 72(1): 57-76 doi:10.1111/0034-6527.00324no_NO
dc.identifier.otherhttp://dx.doi.org/10.1111/0034-6527.00324
dc.identifier.urihttp://hdl.handle.net/11250/178104
dc.descriptionThis is a pre-copy-editing, author-produced PDF of an article accepted for publication in Review of Economic Studies, following peer review. The definitive publisher-authenticated version [Review of Economic Studies, (2005) 72(1): 57-76 ] is available online at: http://restud.oxfordjournals.org/content/72/1/57.full.pdf+htmlno_NO
dc.description.abstractIn this paper we discuss Hicksian demand and compensating variation in the context of discrete choice. We first derive Hicksian choice probabilities and the distribution of the (random) expenditure function in the general case when the utilities are nonlinear in income. We subsequently derive exact and simple formulae for the expenditure and choice probabilities under price (policy) changes conditional on the initial utility level. This is of particular interest for welfare measurement because it enables the researcher to compute the distribution of compensating variation in a simple way.We also derive formulae for the joint distribution of expenditure, the choice before and after a policy change has been introduced.no_NO
dc.language.isoengno_NO
dc.publisherOxford University Press (former published by Wiley-Blackwell)no_NO
dc.subjectHicksian demandno_NO
dc.subjectRandom utility modelsno_NO
dc.subjectHicksian choice probabilitiesno_NO
dc.subjectWelfare measurementno_NO
dc.subjectDiscrete choice theoryno_NO
dc.titleCompensating variation and Hicksian choice probabilities in random utility models that are nonlinear in incomeno_NO
dc.typeJournal articleno_NO
dc.typePeer reviewedno_NO
dc.subject.nsiVDP::Social science: 200::Economics: 210::Economics: 212no_NO
dc.source.pagenumber57-76no_NO
dc.source.volume72no_NO
dc.source.journalReview of Economic Studiesno_NO
dc.source.issue1no_NO


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