Victoria University

The Welfare Gain from a New Good: An Introduction

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The Welfare Gain from a New Good: An Introduction

Creedy, John
URI: http://researcharchive.vuw.ac.nz/handle/10063/3764
Date: 2015
Rights: www.victoria.ac.nz/sacl/about/cpf

Abstract:

This note provides an elementary introduction to the measurement of welfare gains from the introduction of a new good, based on the concept of the ‘virtual price’ and standard expressions for welfare changes arising from price changes.

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