Goodness of fit in optimizing consumer's model

We provide two new indices of efficiency for determining the degree of coherence in an agent's consumption decisions. We analyze to which extent they improve the efficiency displayed by Varian's (Journal of Econometrics, 1990) index. We report on the results of a Montecarlo experiment that confirms that strict improvements of Varian's vector-index appear on a regular basis.

MoreLess

Year of publication:	2009-09-29
Authors:	Alcantud, José Carlos R. ; Matos, Daniel L. ; Palmero, Carlos R.
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Consumer behavior \| GARP \| revealed preference \| goodness of fit

More details

Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D11 - Consumer Economics: Theory ; C15 - Statistical Simulation Methods; Monte Carlo Methods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008561139