Net Surplus Research Articles

An Effective Model for Demand Response Management Systems of Residential Electricity Consumers

An effective demand response (DR) model framework for DR management systems in a residential premise is proposed. The proposed model consists of dynamic price signals from load serving entity (LSE), benefit function, and loss of consumer comfort. The conventional approaches generally consider these factors as independent in their formulation. Since these factors have functional relationship, the proposed model points to a holistic approach to capture the relationship. The scheduling model can be integrated with the home energy scheduler coupled to the smart meter, which facilitates the flow of dynamic price and energy consumption information to and from the household premise. The objective is to maximize net consumer surplus, which is formulated as a function of all aforementioned factors. A method for developing a practical and dynamic consumer benefit model for matured DR programs is proposed in this paper. For the purpose of showing the effectiveness of dynamic benefit function, a set of analytically formulated benefit functions is also considered. The suitability of the dynamic benefit function, as compared with other alternatives, is illustrated with an example. This paper also reports the dynamic price design from the view point of LSE, in order to cover the risks of wholesale price volatility.

Sustainability of school-located influenza vaccination programs in Florida

BackgroundSchool-located influenza vaccination (SLIV) programs are a promising strategy for increasing vaccination coverage among schoolchildren. However, questions of economic sustainability have dampened enthusiasm for this approach in the United States. We evaluated SLIV sustainability of a health department led, county-wide SLIV program in Alachua County, Florida. Based on Alachua's outcome data, we modeled the sustainability of SLIV programs statewide using two different implementation costs and at different vaccination rates, reimbursement amount, and Vaccines for Children (VFC) coverage. MethodsMass vaccination clinics were conducted at 69 Alachua County schools in 2013 using VFC (for Medicaid and uninsured children) and non-VFC vaccines. Claims were processed after each clinic and submitted to insurance providers for reimbursement ($5 Medicaid and $47.04 from private insurers). We collected programmatic expenditures and volunteer hours to calculate fixed and variable costs for two different implementation costs (with or without in-kind costs included). We project program sustainability for Florida using publicly available county-specific student populations and health insurance enrollment data. ResultsApproximately 42% (n=12,853) of pre-kindergarten – 12th grade students participated in the SLIV program in Alachua. Of the 13,815 doses provided, 58% (8042) were non-VFC vaccine. Total implementation cost was $14.95/dose or $7.93/dose if “in-kind” costs were not included. The program generated a net surplus of $24,221, despite losing $4.68 on every VFC dose provided to Medicaid and uninsured children. With volunteers, 99% of Florida counties would be sustainable at a 50% vaccination rate and average reimbursement amount of $3.25 VFC and $37 non-VFC. Without volunteers, 69% of counties would be sustainable at 50% vaccination rate if all VFC recipients were on Medicaid and its reimbursement increased from $5 to $10 (amount private practices receive). Conclusions and relevanceKey factors that contributed to the sustainability and success of an SLIV program are: targeting privately insured children and reducing administration cost through volunteers. Counties with a high proportion of VFC eligible children may not be sustainable without subsidies at $5 Medicaid reimbursement.

On dealing with the pollution costs in agriculture: A case study of paddy fields

The main purpose of this study is to evaluate marginal abatement cost of the main agricultural pollutants. In this sense, we construct three indices including Net Global Warming Potential (NGWP) and Nitrogen Surplus (NS), simulated by a biogeochemistry model, and also an Environmental Impact Quotient (EQI) for paddy fields. Then, using a Data Envelopment Analysis (DEA) model, we evaluate environmental inefficiencies and shadow values of these indices. The results show that there is still room for improvement at no extra cost just through a better input management. Besides, enormous potential for pollution reduction in the region is feasible. Moreover, in paddy cultivation, marginal abatement cost of pesticides and herbicides are much bigger than nitrogen surplus and greenhouse gasses. In addition, in the status quo, the mitigation costs are irrelevant to production decisions. Finally, to deal with the private pollution costs, market-based instruments are proved to be better than command-and-control regulation.

Energy and water self-sufficiency assessment of the white sugar production process in Indonesia using a complex mass balance model

White sugar production consumes considerable amounts of energy and water and, at the same time, generates a substantial amount of material containing energy (biomass) and releases water to the environment. Recycling the biomass as a source of energy and using the released water as a part of the production process will cut fossil fuel and water use. These approaches will significantly save resources and cut the environmental pollution load. The objectives of this study were to analyze the mass balance, assess the energy content of by-products, and build a closed flow of energy and water self-sufficiency in the white sugar production process. A mass balance model was developed to illustrate internal mass-flows and to determine the amount of by-products generated in the production process. The results showed that optimal use of by-products can produce energy and water exceeding the needs of the sugar processing itself, leading to the creation of energy and water self-sufficiency or an independent sugar production process. The potential energy contained in the by-products of a sugar mill with a capacity of 3000 tons of cane per day is approximately 2237 gigacalories per day, which could meet the energy needs of the mill with an excess of 37,081 kWh/day. The mill is also able to produce a net water surplus of 700 m3 per day. This research demonstrated that a complex mass balance model can be used to assess the level or possibility of sugar mill energy and water self-sufficiency. It is suggested that the sugar production process should be developed as a closed-production system that does not require the input of energy and water from outside the system. Application of this production system at a practical level will contribute to reducing sugar mill pollution, reduce coal and other fossil fuel use and help protect water resources from excessive exploitation. A closed production system can be applied to all industries that process raw material containing energy. In the short term, sugar production should be restricted in its use of fossil fuel, public electricity networks, and water from natural sources. In the long run, sugar mills should become multipurpose factories producing sugar, energy, and water.

India–ASEAN Free Trade Agreement: An ex post evaluation

Ex post effects of the India–ASEAN Free Trade Agreement reveal that India's balance of trade with ASEAN has deteriorated and there is a weak correspondence between tariff reforms and trade expansion. The aggregate value of the net surplus with the government after taxing gainers and subsidizing losers was positive up to 2012 but has been declining ever since and became negative 2013 as trade with the rest of the world has fallen for both India as well as ASEAN owing to the global slowdown. We show that had the slowdown not been there the surplus would always have been positive for India. We also propose two alternative policy scenarios where the surplus would always have been positive: an FTA with rest of the world and a schedule where tariff elastic goods were given priority.

Complex reinnervation pattern after unilateral renal denervation in rats.

Renal denervation (DNX) is a treatment for resistant arterial hypertension. Efferent sympathetic nerves regrow, but reinnervation by renal afferent nerves has only recently been shown in the renal pelvis of rats after unilateral DNX. We examined intrarenal perivascular afferent and sympathetic efferent nerves after unilateral surgical DNX. Tyrosine hydroxylase (TH), CGRP, and smooth muscle actin were identified in kidney sections from 12 Sprague-Dawley rats, to distinguish afferents, efferents, and vasculature. DNX kidneys and nondenervated kidneys were examined 1, 4, and 12 wk after DNX. Tissue levels of CGRP and norepinephrine (NE) were measured with ELISA and mass spectrometry, respectively. DNX decreased TH and CGRP labeling by 90% and 95%, respectively (P < 0.05) within 1 wk. After 12 wk TH and CGRP labeling returned to baseline with a shift toward afferent innervation (P < 0.05). Nondenervated kidneys showed a doubling of both labels within 12 wk (P < 0.05). CGRP content decreased by 72% [3.2 ± 0.3 vs. 0.9 ± 0.2 ng/gkidney; P < 0.05] and NA by 78% [1.1 ± 0.1 vs. 0.2 ± 0.1 pmol/mgkidney; P < 0.05] 1 wk after DNX. After 12 wk, CGRP, but not NE, content in DNX kidneys was fully recovered, with no changes in the nondenervated kidneys. The use of phenol in the DNX procedure did not influence this result. We found morphological reinnervation and transmitter recovery of afferents within 12 wk after DNX. Despite morphological evidence of sympathetic regrowth, NE content did not fully recover. These results suggest a long-term net surplus of afferent influence on the DNX kidney may be contributing to the blood pressure lowering effect of DNX.

Optimization across the Water–Energy Nexus for Integrating Heat, Power, and Water for Industrial Processes, Coupled with Hybrid Thermal-Membrane Desalination

The water–energy nexus continues to gain traction around the world, because of the inherent merits in simultaneously considering both resources. In this paper, a systematic procedure is developed for maximizing the benefits of this interdependent relationship, when coupled with industrial processes exhibiting a net surplus of heat energy. The presented methodology utilizes a total site analysis to first screen the process for power and water generation potential. In addition to process water streams, seawater desalination is considered as an additional resource. Based on this analysis, heat integration is carried out to capture the options for steam production for process requirements, thermal desalination of seawater, and power production. For the power generation system, a turbine network is developed, whereas, for the water desalination system, a hybrid multieffect distillation–reverse osmosis (MED-RO) system is utilized. A superstructure is constructed to embed the various configurations, and the asso...

Merger Guidelines for Bidding Markets

Nous proposons un test simple qui détermine si une fusion entre entreprises devrait ou non être autorisée dans une industrie qui sélectionne les candidats à l’exploitation par des appels d’offres. Ce test est appliqué dans le cas particulier de l’industrie du transport urbain en France. Il élabore l’enchère optimale et tient compte de deux effets antagonistes : d’une part, la fusion est préjudiciable, car elle entraîne une perte de concurrence ; d’autre part, les gains d’efficacité potentiels jouent en faveur des entreprises qui fusionnent. Les deux effets peuvent être incorporés dans une unique condition qui détermine si la fusion permet d’améliorer le surplus net du consommateur. Nos résultats suggèrent que la fusion entre Transdev and Veolia améliore le surplus net du consommateur si les gains d’efficacité issus de la fusion permettent aux deux entreprises de diminuer leur inefficacité en termes de coûts d’au moins 17,9 % et 17,8 % respectivement. JEL Codes: L51, C51, L92.

Solar thermal–photovoltaic powered potato cold storage – Conceptual design and performance analyses

Wastage of food crops due to the dearth of proper cold storage facilities is a huge problem in underdeveloped and developing countries of the world. Conceptual design of a potato cold storage is presented here, along with performance appraisal over a calendar year. The microclimate inside the cold storage is regulated using a water–lithium bromide absorption system. Proposed system utilizes both solar thermal and photovoltaic generated electrical energy for its operation. A suitable operation strategy is devised and the performance of the integrated system is analyzed from energy and exergy point of view to identify the required numbers of thermal collectors and photovoltaic modules. The proposed system is found to provide a net surplus of about 36MWh energy over a calendar year, after meeting the in-house requirements. A rudimentary economic analysis is also performed to check the financial viability of the proposed system. Both the thermal and photovoltaic components are found to have payback periods less than four years.

Effective Rates of Corporation Tax in Ireland

This Technical Paper considers the effective tax rate on corporate profits in Ireland. It will be appreciated that this apparently straight-forward concept generates significant confusion. There is no single best measure of the effective tax rate and this Paper presents and examines eight different calculations for an effective tax rate on corporate profits in Ireland under three broad headings: using model companies; using official national statistics; and using company financial reports.The spread of estimates ranges from 2.2 per cent to 15.5 per cent for the most recent data available. Different approaches are relevant depending on the specific nature of the question being addressed. Some approaches are better at measuring the complexity and breadth of corporate tax. Other approaches are better at measuring the effective tax rate of companies. In attempting to assess the effective corporate tax rate that is applied to the aggregate total of corporate profits in Ireland, this Paper has concluded that the approach based on national aggregate statistics is the most suitable.The data from the Central Statistics Office and the Revenue Commissioners provide the best estimates of the effective rate of Irish Corporation Tax on the total profits that are subject to Irish tax but even within that there remains a choice of measures. This Paper has put forward the thesis that the measures based on Net Operating Surplus and Taxable Income best represent the effective Corporation Tax rate in Ireland.Much lower effective tax rates can be identified, notably the effective foreign tax rate for US-owned, Irish-incorporated companies, in the direct investment data produced by the Bureau of Economic Analysis. These show how MNCs can structure their activities to generate very low effective tax rates but it is not possible to achieve such low rates for profits earned in Ireland.The most appropriate effective tax rates identified in this Paper are below the headline 12.5 per cent rate and the reasons for this are the inclusion of foreign-source profits in the case of Taxable Income, and the exclusion of the interest cost of financing in the case of Net Operating Surplus. The impact of these factors is relatively small and the analysis presented here has shown that, since 2003, the effective Corporation Tax rates on Net Operating Surplus and Taxable Income have averaged 10.9 per cent and 10.7 per cent respectively.

An approach for an efficient hybrid AC/DC solar powered Homegrid system based on the load characteristics of home appliances

In this paper, a new and efficient hybrid AC/DC solar powered Homegrid model is proposed based on the load characteristics of a typical set of home appliances working on a 220V, 50Hz system. The load characteristics of home appliances are represented by a static ZIP (constant impedance (Z), constant current (I) and constant power (P)) coefficient model, a useful load model in power flow studies. A Homegrid system is formed by analysing the distortion produced by modern household equipment, and a K-factor with a significant role in the overheating of residential/distribution transformers is determined. Further, the ZIP load model is validated by a simulation and the results are compared with experimental data. To improve the efficiency and quality of the traditional Homegrid system, a solar powered hybrid AC/DC supply network model is proposed. This system eliminates redundant power conversion stages and mitigates the loss due to the harmonics by a shift of harmonic intensive loads to the Direct Current (DC) network side. Its effectiveness has been investigated with a simulation in MATLAB as well as with hardware implementation. This proposed energy efficient Homegrid model could be quite helpful in fulfilling the idea of net zero or surplus energy buildings.

Capsule Commentary on Zallman et al., Unauthorized Immigrants Prolong the Life of Medicare's Trust Fund.

U nauthorized immigrants have become the modern day pariahs. They are barred from programs like Medicare, Medicaid, and even the newHealth InsuranceMarketplace, no matter how long they have lived in the U.S., how sick or how impoverished. Paradoxically, they make payments into Medicare, but are prohibited from eventually receiving Medicare benefits. Part A of Medicare (the hospital component) is f inanced by workers ’— including undocumented workers’—payroll taxes, reserved in the Medicare Trust Fund and paid out as Medicare benefits to elderly or disabled beneficiaries. The government has acknowledged that undocumented immigrants’ untapped contributions to the Social Security Trust Fund, the counterpart to the Medicare fund, prolong its solvency and sustain Social Security benefits for retired citizens. Leah Zallman and her associates have estimated that unauthorized immigrants contributed a net surplus of $35 billion to the Medicare Trust Fund, extending its solvency. They also find that proposals to offer a pathway to citizenship for a portion of the undocumented would continue to create a generous surplus. Even though the new citizens could eventually become eligible for Medicare, legalization would increase their earning power, thereby boosting their tax contributions to the Medicare Trust Fund. It has long been known that immigrants, including the unauthorized, use medical services sparingly and, contrary to popular misconceptions, even use emergency departments less than citizens, so tend to be less costly even when they are insured. But ideological barriers have made it almost impossible to overcome the political challenges needed to improve the conditions for the undocumented, whether through legislation or executive action. For now, unauthorized immigrants are likely to remain in the shadows and reliant on the health care safety net.

Is the World Deteriorating?

THE WORLD IS BECOMING A LESS CONFLICT-RIDDEN PLACE, AND IT HAS BEEN for decades. Wars and violent conflicts are on the decline, according to expert consensus. In particular, we note abundant evidence that suggests that the is not deteriorating from Steven Pinker's conclusion of a long-term general decline in global violence (1) to Azar Gat's analysis pointing to a decline in war since the mid-1990s (2) to the 2013 Human Security Report proclaiming a substantial decline in conflicts since the early 1990s. (3) It was for that reason that a systematic analysis of crisis data from a global leader in crisis tracking left us baffled. We analyzed all of the International Crisis Group's monthly CrisisWatch statistics for the crises it has tracked from its inception in September 2003 to March 2014. Crisis Group's data paint a startlingly different picture: a that has substantially over the past decade. How could this be? If Crisis Group was a mediocre crisis tracker, then we might grant the incongruity to incompetence. (4) But it is well resourced, drawing on multiple sources including over 100 analysts across five continents. In addition, it boasts a stellar cast. Past and current board trustees include a former UN High Commissioner; a former US under-secretary of state and ambassador to the UN, Russia, India, Israel, Jordan, El Salvador, and Nigeria; and a former UN deputy secretary-general and administrator of the UN Development Programme. Crisis Group also prides itself on generally [being] regarded as the world's leading source of information, analysis and policy advice on preventing and resolving deadly conflict. (5) We can confidently rule out incompetence as a source of incongruence with expert consensus, which makes this puzzle all the more interesting. First, the pieces: Crisis Group has tracked or is tracking 130 countries and regions (i.e., distinct conflict zones) over the 127-month period we examined. Crisis Group does not track every zone in every month. Some conflict zones were not on Crisis Group's radar when it started; some that were are not anymore. We first verified whether there was a change in the number of conflict zones tracked over time. Contrary to the world thesis, we found that there was a slight, but statistically significant increase in the number of conflict zones that Crisis Group reported on during roughly the past decade. We then reasoned that, while the number of conflict zones reported on had increased, Crisis Group might have been reporting more favorable conditions over time within those zones. However, that was not the case. In each month, Crisis Group reports whether the conflict zones that it tracks have significantly deteriorated, improved, or on balance remained more or less unchanged. Deterioration means a significant increase in conflict; for example, continued to worsen, attacks significantly escalated, and security further deteriorated are some of the descriptions used for this assessment. Improvement means the opposite; for example, comprehensive peace agreement, new constitution signed, and restore state authority. Unchanged means there was no change in conflict status since the last report. Over the period we examined. Crisis Group issued 9,378 such assessments. Deteriorated situations outnumbered improvements in all but 3 of its 127 months of reporting history. And of the 130 conflict zones, 99 (76.2 percent) had a net surplus of deteriorations by March 2014 over the period they were tracked. Stated differently, over more than a decade of monthly reporting involving 130 conflict zones, the odds of deterioration rather than improvement or stasis were 3:1 based on Crisis Group's reporting. What makes this puzzle more baffling is the fact that some of Crisis Group's leaders have issued statements in support of the improving thesis. For example, in a 2012 opinion essay entitled The Global March Towards Peace, Crisis Group's president emeritus, Gareth Evans, points out, The bigger story has been concealed, as ever, by the media's daily preoccupation with current bloodshed: Over the last two decades, major wars and episodes of mass violence worldwide have become much less frequent and deadly. …

Study on the Role of the Net Surplus for Countercyclical Economic Effect

Study on the Role of the Net Surplus for Countercyclical Economic Effect

Monsoon variability, crop water requirement, and crop planning for kharif rice in Sagar Island, India.

In the Sagar Island of Bay of Bengal, rainfed lowland rice is the major crop, grown solely depending on erratic distribution of southwest monsoon (SM) rainfall. Lack of information on SM rainfall variability and absence of crop scheduling accordingly results in frequent occurrence of intermittent water stress and occasional crop failure. In the present study, we analyzed long period (1982-2010) SM rainfall behavior (onset, withdrawal, rainfall and wetness indices, dry and wet spells), crop water requirement (CWR, by Food and Agriculture Organization (FAO) 56), and probability of weekly rainfall occurrence (by two-parameter gamma distribution) to assess the variability and impact on water availability, CWR, and rice productivity. Finally, crop planning was suggested to overcome monsoon uncertainties on water availability and rice productivity. Study revealed that the normal onset and withdrawal weeks for SM rainfall were 22nd ± 1 and 43rd ± 2 meteorological weeks (MW), respectively. However, effective monsoon rainfall started at 24th MW (rainfall 92.7 mm, p > 56.7 % for 50 mm rainfall) and was terminated by the end of 40th MW (rainfall 90.7 mm, p < 59.6 % for 50 mm rainfall). During crop growth periods (seed to seed, 21st to 45th MW), the island received an average weekly rainfall of 65.1 ± 25.9 mm, while the corresponding weekly CWR was 47.8 ± 5.4 mm. Despite net water surplus of 353.9 mm during crop growth periods, there was a deficit of 159.5 mm water during MW of 18-23 (seedling raising) and MW of 41-45 (flowering to maturity stages). Water stress was observed in early lag vegetative stage of crop growth (32nd MW). The total dry spell frequency during panicle initiation and heading stage was computed as 40 of which 6 dry spells were >7 days in duration and reflected a significant (p < 0.05) increasing trend (at 0.22 days year(-1)) over the years (1982-2010). The present study highlights the adaptive capacity of crop planning including abiotic stress-tolerant cultivars to monsoon rainfall variability for sustaining rainfed rice production vis-à-vis food and livelihood security in vulnerable islands of coastal ecosystem.

Global imbalances, current account rebalancing and exchange rate adjustments

Global imbalances pose a serious question for academia and policy makers related to its formation, sustainability and correction. In this paper we analyze the required adjustments of exchange rates for rebalancing in current accounts. We set up a two-country two-sector model for the US-China with two asymmetries. First, we assume that the size of China initially is one third of the US but its size becomes half in the next 10 years. Second, we assume that China initially runs a net export surplus. Then we quantitatively study two adjustment scenarios. First scenario, called Slow Adjustment, assumes that in the process of growth, Chinese demand composition moves more towards domestic non-tradable sector. In this case, Chinese real exchange rate appreciates gradually and net export surplus decreases slowly. Second scenario, called Quick Adjustment, assumes that net export surplus against US goes to zero quickly in five years. In this case, net export adjustment happens quickly and real exchange rates in China appreciate at a higher rate. Even though, global imbalances are eliminated faster in the Quick Adjustment case, high real appreciation in China hurts importers in the US. A comparison in terms of output shows that Slow Adjustments is preferred for both countries.

Sustainable Extensification as an Alternative Model For Reducing GHG Emissions From Agriculture. The Case of an Extensively Managed Organic Farm in Denmark

GHG emissions of an extensively managed Danish organic farm were estimated upstream and on-farm. The results were compared to Danish national levels based on land area and output. Overall, the farm emitted 2.12 t CO2eq ha−1 yr−1. Excluding land use, land use change, and forestry (LULUCF) related emissions, the combined GHG emissions from energy- and agriculture-based activities at the case farm were 47% lower (per unit area) and 12% higher (per unit output), than GHG emissions from Danish agriculture. With current livestock density (0.64 LU ha−1) and crop production area, the case study farm would supply at average 1,466 kcal per inhabitant per day in Denmark, if the farm was scaled up to Danish national level. With a reduction of livestock density to 0.36 LU ha−1 and proportional cropland area expansion for food production (ceteris paribus), the case study farm could supply around 4,940 kcal person−1 day−1, matching Danish national levels (including Danish net food export surplus of 41.5%). Simultaneously, the case study farm would have a better GHG balance per unit area and unit output in food, compared to the rest of Denmark. Hence, the case study farm system could serve as an alternative model for Danish agriculture under a sustainable extensification scenario with lower GHG emissions, while maintaining sufficient output for human consumption.

Public investments in sustainable technology: an evaluation of North Carolina's Green Business Fund

North Carolina's Green Business Fund, a state-level sustainability–technology program, is evaluated in terms of net economic surplus. To conduct this evaluation, this paper develops and implements an economic model from which values of producer and consumer surplus can be measured. Data limitations drive modeling choices, namely the model must be applicable when the researcher is unable to decompose revenues into separate prices and quantities. The method used in this paper is an extension of one previously used to examine SBIR programs facing similar data limitations. An additional facet of the modeling method is a specification such that the presence of an existing technology can also be taken into account. This allows the evaluation to focus only on newly created surplus. The findings from this evaluation suggest that the Green Business Fund has resulted in a positive net social surplus and, when imposing an elasticity of demand drawn from the literature on other sustainability-based technologies, a benefit-to-cost ratio of above 2.

Analysis of Consistent Equilibria in a Mixed Duopoly

This paper examines a model of a mixed duopoly with conjectural variations equilibrium (CVE), in which one of the agents maximizes a convex combination of his/her net profit and domestic social surplus. The agents’ conjectures concern the price variations, which depend on their production output variations. Based on the already established existence and uniqueness results for the CVE (called theexterior equilibrium) for any set of feasible conjectures, the notion of interior equilibrium is introduced by developing a consistency criterion for the conjectures (referred to as influence coefficients), and the existence theorem for the interior equilibrium (understood as a CVE state withconsistent conjectures) is proven. When the convex combination coefficient tends to 1, thus transforming the model into the mixed duopoly in its extreme form, two trends are apparent. First, for the private company, the equilibrium with consistent conjectures becomes more proficient than the Cournot-Nash equilibrium. Second, there exists a (unique) value of the combination coefficient such that the private agent’s profit is the same in both of the above-mentioned equilibria, which makes subsidies to the producer or to consumers unnecessary.

The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs

The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on the cost. We apply our methodology to estimate the gross benefit and net surplus of attending college.