Ke. Mcconnell et Ma. Rosado, Valuing discrete improvements in drinking water quality through revealed preferences, WATER RES R, 36(6), 2000, pp. 1575-1582
We show how nonmarginal benefits from higher drinking water quality can be
measured doing a standard welfare analysis, where the parameters for the an
alysis are obtained through a nested legit model structured according to th
e defensive inputs available for drinking water treatment.