Is utility transferable? a revealed preference analysis

The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with transferable utility. We also show that these conditions are testable by means of integer programming methods.

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Year of publication:	2015
Authors:	Cherchye, Laurens ; Demuynck, Thomas ; De Rock, Bram
Published in:	Theoretical Economics. - New Haven, CT : The Econometric Society, ISSN 1555-7561. - Vol. 10.2015, 1, p. 51-65
Publisher:	New Haven, CT : The Econometric Society
Subject:	Transferable utility hypothesis \| generalized quasi-linearity \| household consump- tion \| nonparametric tests \| revealed preferences

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.3982/TE1560 [DOI] 893611697 [GVK] hdl:10419/150243 [Handle] RePEc:the:publsh:1560 [RePEc]
Classification:	C14 - Semiparametric and Nonparametric Methods ; D1 - Household Behavior and Family Economics ; D11 - Consumer Economics: Theory ; D12 - Consumer Economics: Empirical Analysis ; D13 - Household Production and Intrahouse Allocation
Source:	EconStor

Persistent link: https://www.econbiz.de/10011599534