What are shadow prices? Please describe the main caveats in their estimation. Under which conditions, shadow prices

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What are shadow prices? Please describe the main caveats in their estimation. Under which conditions, shadow prices can be computed as Lagrange multipliers of a constrained planning problem?

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Applied Welfare Economics

ISBN: 978-1032022185

2nd Edition

Authors: Massimo Florio ,chiara Pancotti

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Question Posted: Jan 31, 2024 03:03 AM

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What are shadow prices? Please describe the main caveats in their estimation. Under which conditions, shadow prices

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Shadow prices also known as dual prices can be defined as theoretical prices or estimated price levels The shadow price of a good or resource reflects the value of that good or resource when used in i...View the full answer

Applied Welfare Economics

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