Extending Vartia's (1983) framework, the paper presents a simple numerical approach to the measurement of welfare for market and nonmarket goods on the basis of an incomplete (mixed) demand system. The method allows the determination of exact welfare measures. It provides a flexible and...

The paper provides a rigorous derivation of the "welfare triangle approximation" (WTA), which is at the center of cost benefit analysis. The result is generalized by showing that the WTA is one of two dual expressions, one of which approximates the change in real consumption, the other the...

The paper provides a rigorous derivation of the "welfare triangle approximation" (WTA), which is at the center of cost benefit analysis. The result is generalized by showing that the WTA is one of two dual expressions, one of which approximates the change in real consumption, the other the...