Shadow Pricing Rules for Partially Traded Goods

Londero, Elio (1996): Shadow Pricing Rules for Partially Traded Goods. Published in: Project Appraisal , Vol. 11, No. 3 (1996): pp. 169-182.

Abstract

This paper shows how to shadow price partially traded goods following the standard rules of cost-benefit Analysis, that is, identifying the individuals affected, measuring their corresponding compensating variations, and aggregating those measures according to a distributional value judgement. The analysis is conducted in a partial equilibrium framework, allowing for direct operational application.

• Item Type: MPRA Paper
• Language: English
• Keywords: shadow price, accounting price, partially traded goods, cost-benefit analysis
• Subjects: D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis

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