Distortions resulting from consumption subsidies or rationing systems often lead welfare analysts... more Distortions resulting from consumption subsidies or rationing systems often lead welfare analysts to use market price opinions, where household budget survey respondents are asked to provide their opinions of equivalent market prices of subsidized or rationed goods, to value consumption of the rationed goods. This is because prices paid by households for rationed goods do not represent the true marginal utility from consumption of these goods. This is the case in household budget surveys undertaken in Iraq, for example, where rationed food items received through the Public Distribution System are valued at market prices using price opinion data rather than at official prices facing households. Despite the fact that most Living Standards Measurement Surveys conducted in countries that maintain consumption subsidies collect market price opinions, little evidence exists to support the notion that respondent opinions on market prices adequately approximate shadow prices of subsidized or...
Distortions resulting from consumption subsidies or rationing systems often lead welfare analysts... more Distortions resulting from consumption subsidies or rationing systems often lead welfare analysts to use market price opinions, where household budget survey respondents are asked to provide their opinions of equivalent market prices of subsidized or rationed goods, to value consumption of the rationed goods. This is because prices paid by households for rationed goods do not represent the true marginal utility from consumption of these goods. This is the case in household budget surveys undertaken in Iraq, for example, where rationed food items received through the Public Distribution System are valued at market prices using price opinion data rather than at official prices facing households. Despite the fact that most Living Standards Measurement Surveys conducted in countries that maintain consumption subsidies collect market price opinions, little evidence exists to support the notion that respondent opinions on market prices adequately approximate shadow prices of subsidized or...
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Papers by Tareq Abuelhaj