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Some Methodological Developments in the Measurement of the Benefit of an In-Kind Transfer

This paper critically examines the evolu tion of the indifference map approach to mea suring the benefit of an in-kind transfer ac cording to Hick's (1943) concept of price equivalent variation of income. The purpose of such an examination is to introduce to those unfamiliar with it this important meth odology, which ought to be seriously consid ered for use whenever the benefits of in-kind transfer programs are to be estimated. Since virtually all of the development of the meth odology for measuring the Hicksian benefit measure is found in the literature on evalua tion of rental housing subsidies, the evolution of the methodology is described within this context.