Homothetic utility, Roy’s Lemma and consumer’s surplus

C-Tier

Journal: Economics Letters

Year: 2017

Volume: 161

Issue: C

Pages: 133-134

Authors (1)

ten Raa, Thijs (Universiteit Utrecht)

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

I provide a short proof that consumer’s surplus normalized by income is the correct welfare measure when utility is homothetic.