Title of article
Weak complementarity, path independence, and the intuition of the Willig condition
Author/Authors
Raymond B. Palmquist، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2005
Pages
13
From page
103
To page
115
Abstract
Weak complementarity is usually invoked for valuing public goods using information on private goods. However, using uncompensated demands requires a second condition, the Willig condition. This paper present an intuitive explanation of the Willig condition and shows that the alternative versions are equivalent to a path-independence condition for line integrals. This condition is fulfilled for compensated demands but not uncompensated demands except in restrictive special cases. It is shown that this is a type of quasi-homotheticity and requires that the income flexibility of quality must equal the income elasticity of the weak complement. The importance and restrictiveness of the Willig condition are shown using three alternative functional forms.
Keywords
Weak complementarity , Path independence , Willig condition , recreation , Welfare measurement
Journal title
Journal of Environmental Economics and Management
Serial Year
2005
Journal title
Journal of Environmental Economics and Management
Record number
703957
Link To Document