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.


Issue Date:
2005
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/19477
Total Pages:
9
JEL Codes:
D60; C24; Q51
Series Statement:
Selected Paper 136717




 Record created 2017-04-01, last modified 2017-08-24

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