Given the empirically observed sensitivity of welfare estimates to functional form, it is natural to consider whether nonparametric methods such as those developed by Varian might be of value in nonmarket welfare analysis. This study presents simple methods for constructing nonparametric bounds on compensating or equivalent variation for price changes based on nonparametric methods.
This working paper was published as Crooker, John and Catherine L. Kling, "Nonparametric Bounds on Welfare Measures: A New Tool for Nonmarket Valuation," Journal of Environmental Economics and Management 39 (2000): 145–161, doi:10.1006/jeem.1999.1099.
Crooker, John and Kling, Catherine L., "Nonparametric Bounds on Welfare Measures: A New Tool for Nonmarket Valuation" (1998). CARD Working Papers. 244.