Consumer Surplus Estimates and the Source of Regression Error

Contrary to widely held belief, we show that the source of regression error does not matter when calculating Marshallian surplus. A misspecified demand curve, not the assumed source of regression error, leads to differences in estimates of consumer surplus.

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Year of publication:	2005
Authors:	Beatty, Timothy K.M. ; Brozovic, Nicholas ; Ward, Michael B.
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Regression Error \| Marshallian Surplus \| Welfare Analysis \| Consumer/Household Economics

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Extent:	application/pdf
Series:	2005 Annual meeting, July 24-27, Providence, RI.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2005 Annual meeting, July 24-27, Providence, RI Number 19477
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005803313