Comparability of Market Prices and Consumer Surplus for Resource Allocation Decisions
Abstract:When a consistent theoretical structure is used for assessing the economic worth of different resources, monetary values assigned to nonmarketed outputs from forested lands (such as recreation) are comparable to market prices for marketed outputs. Microeconomic theory is used to determine when consumer surplus should be included as a part of the value assigned to a change in output. The exclusion or inclusion of consumer surplus depends on whether the change being considered is small or large relative to market demand. Combining information about the dollar value of outputs with similar information about costs facilitates economic efficiency analysis for the purpose of resource allocation decisions.
Document Type: Journal Article
Affiliations: Economist, U.S. Forest Service, Rocky Mountain Forest and Range Experiment Station, Fort Collins, CO.
Publication date: February 1, 1985
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- The Journal of Forestry is the most widely circulated scholarly forestry journal in the world. In print since 1902, the Journal has received several national awards for excellence. The mission of the Journal of Forestry is to advance the profession of forestry by keeping forest management professionals informed about significant developments and ideas in the many facets of forestry: economics, education and communication, entomology and pathology, fire, forest ecology, geospatial technologies, history, international forestry, measurements, policy, recreation, silviculture, social sciences, soils and hydrology, urban and community forestry, utilization and engineering, and wildlife management. The Journal is published bimonthly: January, March, May, July, September, and November.
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