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Nonparametric estimation of exact consumer surplus and deadweight loss. (English) Zbl 0978.91054
Strøom, Steinar (ed.), Econometrics and economic theory in the 20th century. The Ragnar Frisch centennial symposium. Papers from the symposium held in Oslo, Norway, March 3-5, 1995. Cambridge: Cambridge University Press. Econ. Soc. Monogr. 31, 111-146 (1998).
This chapter applies nonparametric regression models to the estimation of the demand functions that are of exponential form and are frequently used in applied research. It derives the exact consumer surplus and deadweight loss for the estimated demand function. It also provides an asymptotic variance estimation and asymptotic distribution theory for both parametric and nonparametric cases. The method is applied to the estimation of the gasoline demand function, including an analysis of the sensitivity of the welfare measures to components of nonparametric estimators.
For the entire collection see [Zbl 0944.00092].

MSC:
91B42 Consumer behavior, demand theory
91B76 Environmental economics (natural resource models, harvesting, pollution, etc.)
91B82 Statistical methods; economic indices and measures
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