Review of Economic Studies Vol. 51 No. 1 1984

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

Charles Blackorby; David Donaldson¹; David Moloney²

¹ University of British Columbia · ² Bank of Canada

Abstract

This paper shows that the discounted sum of instantaneous equivalent or compensating variations (generalized to allow for expenditure changes) is never an exact welfare indicator for a consumer whose preferences are represented by a continuous, increasing inter-temporal utility function.

DOI

10.2307/2297712

Volume

51

Issue

1

Pages

171

Sources

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