Consumer surplus
We define consumers surplus as saving from purchases in study area as opposed to additional travel, food, lodging expenses to purchase outside SA. Can this CS be modeled as a new spending injection or is it a contribution? Can we define some consumer spending profile to estimate impact?
Was this post helpful?
-
I'm not sure that everyone would agree with your definition of CS, but let's assume that you are speaking about the difference between funds that a person might have spent and funds that the person actually spent. Let's further assume that ultimately the person intends to spend those funds -- that is, we're talking about something real rather than hypothetical. Then sure, the CS can be used as a income source for spending impacts. Unless you have some specific information about how the CS is going to be spent I'd treat CS like ordinary income and use a household spending pattern for personal consumption to allocate the spending demands.0
Please sign in to leave a comment.
Comments
1 comment