The amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in the economy. Provides a monetary measure of the welfare effect of that change that is similar to, but not in general the same as, compensating variation.

Related information about equivalent variation:

1. Equivalent variation - Wikipedia, the free encyclopedia
   Equivalent variation (EV) is a measure of how much more money a consumer would pay before a price increase to avert the price increase. Because the ...
    
2. Compensating and Equivalent Variation and Consumer Surplus
   Compensating variation and equivalent variation are two different answers to the question: How much of a change in income is necessary to offset a change in ...
    
3. 16. Compensating Variation and Equivalent Variation - YouTube
   Nov 8, 2009 ... In this video, I introduce two measures of consumer welfare: compensating variation and equivalent variation. In the process of introducing ...
    
4. Chapter 19: Compensating and Equivalent ... - User Web Areas
   In this case the equivalent variation is negative – the individual needs to be given money ... and the equivalent variation from the perspective of the original price.
    
5. CV and EV- Examples - Nicholas J. Sanders
   Equivalent Variation (EV) - EV is how much money the consumer would be willing to give up (or be paid) to prevent prices from changing - it is the change in ...
    
6. Equivalent variation: Information from Answers.com
   Equivalent Variation The amount of additional income needed to give the level of utility which an individual could have reached if the economic environment.
    
7. What is equivalent variation? definition and meaning
   Definition of equivalent variation: The amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in ...
    
8. The Equivalent Variation using the Expenditure Function Putting a ...
   The Equivalent Variation using the Expenditure Function. Putting a tax on clothing pivots the consumer's budget line in, and lowers her utility. Let u1 be the new ...