Small project evaluations may overlook real societal impacts, study finds.
The article compares two ways of evaluating the impact of policies on markets: partial equilibrium and general equilibrium. When markets are perfect and policies are small, both methods give similar results. But when changes are bigger or markets aren't perfect, the outcomes differ. In these cases, different tools need to be used to measure people's willingness to pay for price changes. This information is more detailed and suited for economics graduate students.