Rationalizability, cost-rationalizability, and Afriat's efficiency index

Matthew Polisson, John K.-H. Quah

This note explains the equivalence between approximate rationalizability and approximate cost-rationalizability within the context of consumer demand. In connection with these results, we interpret Afriat’s (1973) critical cost eﬃciency index (CCEI) as a measure of cost (in)eﬃciency, in the sense that a consumer is spending more money than is required to achieve her utility targets.

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Year of publication:	[2022]
Authors:	Polisson, Matthew ; Quah, John K.-H.
Publisher:	[London] : Institute for Fiscal Studies
Subject:	rationalizability \| cost-rationalizability \| Afriat’s efficiency index \| CCEI \| Theorie \| Theory \| Index \| Index number \| Effizienz \| Efficiency \| Rationalität \| Rationality \| Data-Envelopment-Analyse \| Data envelopment analysis \| Technische Effizienz \| Technical efficiency

Extent:	1 Online-Ressource (circa 13 Seiten)
Series:	Working paper. - [London] : [IFS, Institute for Fiscal Studies], ZDB-ID 3033083-X. - Vol. 22, 04
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.1920/wp.ifs.2022.0422 [DOI] hdl:10419/254254 [Handle]
Classification:	D11 - Consumer Economics: Theory ; D12 - Consumer Economics: Empirical Analysis
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012802989