{"ID":493970,"CreatedAt":"2026-03-04T20:59:09Z","UpdatedAt":"2026-03-04T20:59:09Z","DeletedAt":null,"paper_url":"https://paperswithcode.com/paper/price-changes-and-welfare-analysis","arxiv_id":"2303.01231","title":"Consumer Welfare under Individual Heterogeneity","abstract":"Welfare effects of price changes are often estimated with cross-sections; however, such data do not identify demand models with heterogeneous consumers. We develop a method that leverages moments of demand to construct a local approximation to the curvature of the expenditure function, which is essential for welfare analysis. Our method applies to arbitrary cross-sections and delivers a nonparametric approximation to the entire distribution of consumer welfare, robust to unobserved preference heterogeneity. We provide moment- and quantile-based estimation strategies that are simple to implement.","url_abs":"https://arxiv.org/abs/2303.01231v4","url_pdf":"https://arxiv.org/pdf/2303.01231v4.pdf","authors":"[\"Charles Gauthier\", \"Sebastiaan Maes\", \"Raghav Malhotra\"]","published":"2023-03-01T00:00:00Z","tasks":"[]","methods":"[]","has_code":false}