Compensating Variation as a Measure of Welfare Change

1992 ◽  
pp. 93-128
Author(s):  
John S. Chipman ◽  
James C. Moore
Keyword(s):  
Compensating Variation ◽  
Welfare Change

scholarly journals Dampak Perubahan Harga Pangan terhadap Tingkat Kesejahteraan Rumah Tangga di Indonesia

2019 ◽  
Vol 37 (1) ◽  
pp. 25
Author(s):  
Rita Yuliana ◽  
NFN Harianto ◽  
Sri Hartoyo ◽  
Muhammad Firdaus
Keyword(s):  
Linear Approximation ◽  
Urban Areas ◽  
Rural Poverty ◽  
Food Prices ◽  
Demand System ◽  
Household Welfare ◽  
Almost Ideal Demand System ◽  
Compensating Variation ◽  
Welfare Change ◽  
Agricultural Households

<strong>English</strong><br />The most important people's welfare related food problem is increasing food prices. Food price induced welfare change varies by household groups, either by location (urban/rural), poverty status (poor/non-poor), and souces of incomes (agriculture/non-agricultural). The sources of the welfare change may also vary by food categories. This study aims to evaluate changes in household welfare in Indonesia by household groups and the contribution of food categories. The household welfare was measured with the Compensating Variation which was computed by using the Hicksian compensated price elasticities obtained from the estimated Linear Approximation Almost Ideal Demand System using the National Socio-Economic Survey March 2016 data. The results showed that in March 2016, welfare losses in all household groups, in urban areas higher than in rural areas, in poorer households higher than non-poor, in agricultural households higher than non-agricultural and the contribution of each food group to the decline in welfare levels varies among individual household groups. The largest contributor is food prices. Rice is the largest contributor for the rural, the poor and the agricultural households. Animal products, fruit, prepared food and beverage and cigarettes categories are the main contributors for the urban, the not poor and the non-agricultural households.<br /><br /><br /><strong>Indonesian</strong><br />Permasalahan pangan utama yang berkaitan dengan tingkat kesejahteraan masyarakat adalah kenaikan harga pangan. Perubahan tingkat kesejahteraan akibat kenaikan harga pangan berbeda menurut kelompok seperti menurut tempat tinggal (perkotaan/perdesaan), status kemiskinan (miskin/tidak miskin), sumber utama penghasilan rumah tangga (pertanian/nonpertanian). Demikian pula kontribusi masing-masing kategori pangan terhadap perubahan tingkat kesejahteraan berbeda pada kelompok rumah tangga sama. Penelitian ini bertujuan untuk mengevaluasi perubahan tingkat kesejahteraan rumah tangga di Indonesia menurut kelompok rumah tangga dan kontribusi kategori pangan terhadap perubahan tingkat kesejahteraan tersebut. Perubahan kesejahteraan diukur dengan <em>Compensating Variation</em> berdasarkan<em> </em>elastisitas harga terkompensasi Hicksian yang diperoleh dari model permintaan <em>Linear Approximation Almost Ideal Demand System</em> dengan data Survei Sosial Ekonomi Nasional periode Maret 2016. Hasil penelitian menunjukkan bahwa pada Maret 2016, terjadi penurunan kesejahteraan pada semua kelompok rumah tangga, di perkotaan lebih tinggi daripada di perdesaan, pada rumah tangga miskin lebih tinggi dari pada tidak miskin, pada rumah tangga pertanian lebih tinggi dari pada nonpertanian. Kelompok makanan berkontribusi tertinggi terhadap penurunan tingkat kesejahteraan rumah tangga secara umum. Beras berkontribusi tertinggi dalam penurunan tingkat kesejahteraan kelompok rumah tangga perdesaan, miskin, dan pertanian. Kategori pangan hewani, kelompok buah-buahan, makanan dan minuman jadi serta rokok berkontribusi tertinggi untuk kelompok rumah tangga di perkotaan, tidak miskin dan nonpertanian.

Consumer's Surplus and Welfare Change in a Simple Dynamic Model

1984 ◽  
Vol 51 (1) ◽  
pp. 171 ◽  
Author(s):  
Charles Blackorby ◽  
David Donaldson ◽  
David Moloney
Keyword(s):  
Dynamic Model ◽  
Welfare Change

Calculating, With Income Effects, the Compensating Variation for a State Change

2007 ◽  
Vol 39 (2) ◽  
pp. 83-90 ◽  
Author(s):  
Edward Morey ◽  
Kathleen Greer Rossmann
Keyword(s):  
State Change ◽  
Compensating Variation ◽  
Income Effects

scholarly journals Hicksian Welfare Measures and the Normative Endowment Effect

2010 ◽  
Vol 2 (4) ◽  
pp. 171-194 ◽  
Author(s):  
Thomas A Weber
Keyword(s):  
Utility Function ◽  
Sufficient Conditions ◽  
Endowment Effect ◽  
Indirect Utility ◽  
Compensating Variation ◽  
Equivalent Variation ◽  
Indirect Utility Function ◽  
Welfare Measures ◽  
Empirical Implications ◽  
Hicksian Welfare

We show that the Hicksian welfare measures of compensating variation and equivalent variation coincide if one of them is evaluated at a compensated income. The measures are nondecreasing in income if the varied attribute and income are complementary, and indirect utility is concave in income. Income monotonicity implies the normative endowment effect, where the equivalent variation exceeds the compensating variation. We provide sufficient conditions for the normative endowment effect and discuss empirical implications. In the global absence of a strict (anti-) endowment effect, both Hicksian welfare measures must be independent of income and the indirect utility function additively separable in income. (JEL D11, D63)

scholarly journals Measuring the Effects of U.S. Meat Trade on Consumers' Welfare

1993 ◽  
Vol 25 (1) ◽  
pp. 217-227 ◽  
Author(s):  
Kuo S. Huang
Keyword(s):  
Meat Consumption ◽  
Demand Systems ◽  
Price Forecasting ◽  
Compensating Variation ◽  
Inverse Demand

AbstractA set of ordinary and inverse demand systems for U.S. quarterly meat consumption is estimated for use to measure the effects of U.S. meat trade on consumers' welfare. The approach is useful to incorporate all direct- and cross-commodity effects into price forecasting and the Hicksian compensating variation measurement.

A Problem Shared? The Role of the Public in the Legitimation of Policy: A Case Study of Gendered Welfare Change in the United Kingdom

2021 ◽  
Author(s):  
Laura Richards-Gray
Keyword(s):  
United Kingdom ◽  
Focus Groups ◽  
Welfare Reform ◽  
Welfare Policies ◽  
The Public ◽  
The United Kingdom ◽  
Disadvantaged Women ◽  
Welfare Change

Abstract This article argues that shared problematizations—shared political and public ways of thinking—legitimize policies and their outcomes. To support this argument, it examines the legitimation of gendered welfare reform in the recent U.K. context. Drawing on focus groups with the public, it provides evidence that the public’s problematization of welfare, specifically that reform was necessary to “make work pay” and “restore fairness”, aligned with that of politicians. It argues that the assumptions and silences underpinning this shared problematization, especially silences relating to the value and necessity of care, have allowed for welfare policies that have disadvantaged women.

The Direction of Welfare Change: Welfare Criteria

2004 ◽  
pp. 47-64
Author(s):  
Yew-Kwang Ng
Keyword(s):  
Welfare Change
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