Economic analysis often faces challenges in the valuation of non-market goods and services. The traditional set of non-market valuation tools for measuring Marshallian economic surplus has limitations related to potential bias in stated preferences and endogeneity of non-market amenity placement...

This paper discusses a novel approach to elicit people's preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional...

The paper shows that a comparison of the appropriately-weighted sum of households' marginal willingness to pay for a public good with the net effect of the increased supply of the public good on shadow, as distinct from actual, government revenue is a generally valid rule for public good...