WELFARE MEASUREMENT IN SINGLE AND MULTIMARKET MODELS - THEORY AND APPLICATION

In this paper we provide an analysis of tax reforms along the lines of the multimarket welfare measurement techniques suggested by Just, Hue th, and Schmitz. A key purpose of our analysis is to shed light on the approximating features of partial equilibrium models. We derive a res ult on the difference between single and multimarket welfare measureme nt, showing how the difference boils down to a set of key parameters. We use our approach to analyze a proposal put forward by the Swedish C ommission of Environmental Charges regarding chlorine emissions from t he Swedish pulp and paper industry.