摘要：Failure of integrability is shown to cause path-dependence of willingness-to-pay measures of welfare change. Using the linear expenditure system, effectsof failure of integrability are negligible (substantial) for estimating income(price) elasticities. For single price changes, Hausman's approach tocalculating willingness to pay from ordinary demands becomes subject toexcessive errors of estimation. For multiple price changes, calculations ofwillingness to pay become path dependent. The empirical approach of Vartiato calculation of willingness to pay for multiple price changes thus involves anarbitrary choice of path. Furthermore, the Willig results justifying consumersurplus approximation fail.
