Measures of welfare gains/losses

[jpfeifer]

It’s more complicated as we are talking about welfare, so the path of utility matters. Usually, you do something like

Consumption Equivalence_Welfare analysis

Hi, I am trying to proceed with a welfare analysis. I have estimated the values of consumption equivalence for the 2 regimes as well as the values from the welfare equations, however i am not sure whether i need to compare the values of consumption equivalent or welfare values and determine the optimal policy. I read in previous posts that the change of sign matters, but for example in my case both regimes have negative sign for consumption equivalent. Which is the best policy, the one with…