The Demand for Environmental Quality and the Existence of a Rational Preference Structure: The Case of Mixed Demand Functions

• Autor(a) principal: Cunha-e-Sá, Maria A.
• Data de Publicação: 1997
• Outros Autores: Ducla-Soares, Maria Manuela
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/88446

In a world characterized by unrationed goods (ie, market goods), and rationed ones, such as most of environmental goods, we derive sufficient conditions for the existence of an underlying rational preference structure based on a mixed system of demand functions. Differently from Madden (1991), where rationality is assumed (ie, a preference-based approach), we adopted a choice-basic approach. As a result, more restrictive conditions have to be imposed. For policy purposes, in particular, in what concerns welfare evaluations, our results can be of great relevance.