How to Calculate Compensating Variation and Equivalent Variation

preview_player
Показать описание
How to calculate the compensating variation and equivalent variation from a price decrease using the compensated (Hicksian) demand.
Рекомендации по теме
Комментарии
Автор

this is helpful but i find this method very difficult to use when the utility function is something like U = x^(1/2) + y. trying to calculate the compensated demand seems impossible without a y term in the mux/muy = x/py equation. any tips?

jaybird