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Article
Estimation and Welfare Calculation in a Generalized Corner Solution Model with an Application to Recreation Demand
Review of Economics and Statistics
  • Daniel J. Phaneuf, North Carolina State University
  • Catherine L. Kling, Iowa State University
  • Joseph A. Herriges, Iowa State University
Document Type
Article
Publication Version
Published Version
Publication Date
1-1-2000
DOI
10.1162/003465300558650
Abstract
The Kuhn-Tucker model of Wales and Woodland (1983) provides a utility theoretic framework for estimating preferences over commodities for which individuals choose not to consume one or more of the goods. Due to the complexity of the model, however, there have been few applications in the literature and little attention has been paid to the problems of welfare analysis within the Kuhn-Tucker framework. This paper provides an application of the model to the problem of recreation demand. In addition, we develop and apply a methodology for estimating compensating variation, relying on Monte Carlo integration to derive expected welfare changes.
Comments

This article is from Review of Economics and Statistics 82 (2006): 83, doi:10.1162/003465300558650. Posted with permission.

Copyright Owner
MIT Press
Language
en
File Format
application/pdf
Citation Information
Daniel J. Phaneuf, Catherine L. Kling and Joseph A. Herriges. "Estimation and Welfare Calculation in a Generalized Corner Solution Model with an Application to Recreation Demand" Review of Economics and Statistics Vol. 82 Iss. 1 (2000) p. 83 - 92
Available at: http://works.bepress.com/catherine_kling/6/