The expected consumer's surplus as a welfare measure

Article Abstract:

The use of expected consumer's surplus (ECS) as a monetary tool for gauging consumer wealth must be discouraged since it does not provide substantial information about the ranking of price distributions. ECS may only be used as an indicator of consumer wealth, if and only if, consumers are risk-neutral and their income elasticity of demand is equal to zero. In evaluating consumer wealth, other micro economic measures may be used instead, including the second degree approximation method proposed by Taylor in assessing indirect utility functions.

Research, Analysis, Evaluation, Consumption (Economics), Welfare, Public assistance, Microeconomics

---

Tax evasion and orders of risk aversion

Article Abstract:

The degree of an individual's risk aversion needed to determine the required rate of tax compliance proved to be not excessive. A consistent relationship was found to exist between risk aversion of individuals and risk behavior as shown by financial and insurance risk pricing. Such relationship is greatly being attributed to the creation of a clear definition regarding risk aversion.

Economic aspects, Tax evasion, Taxpayer compliance

---

Similar abstracts:

• Abstracts: The selection principle and market failure in systems competition
• Abstracts: Evaluating non-structural measures of the business cycle. Inflation uncertainty and excess returns on stocks and bonds

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.