Show that the indirect utility function given in Eq. (15.21) is consistent with the Willig condition by

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Show that the indirect utility function given in Eq. (15.21) is consistent with the Willig condition by demonstrating that Eq. (15.14) holds. (first use V(•) to derive θ ^q(•), and then state the relevant elasticities.)

Eq (15.21)

Eq (15.14)

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A Course In Environmental Economics

ISBN: 9781316866818

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Authors: Daniel J Phaneuf, Till Requate

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Question Posted: Feb 15, 2024 08:01 AM

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Show that the indirect utility function given in Eq. (15.21) is consistent with the Willig condition by

Question:

V(p.y.q) = exp(-ry) Y + exp(a+Bp+0q) (15.21)

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A Course In Environmental Economics

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