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Abstract
Nonmarket goods include quality aspects of market goods and public
goods which may be substitutes or complements for private goods.
Traditional methods of measuring benefits of exogenous changes in nonmarket
goods are based on Marshallian demand: change in spending on market goods or
change in consumer surplus. More recently, willingness to pay and accept
have been used as welfare measures . This paper defines the relationships
among alternative measures of welfare for perfect substitutes, imperfect
substitutes, and complements. Examples are given to demonstrate how to
obtain exact measures from systems of market good demand equations .