Rationalizing and Curve-Fitting Demand Data with Quasilinear Utilities

In the empirical and theoretical literature a consumer's utility function is often assumed to be quasilinear. In this paper we provide necessary and sufficient conditions for testing if the consumer acts as if she is maximizing a quasilinear utility function over her budget set. If the consumer's choices are inconsistent with maximizing a quasilinear utility function over her budget set, then we compute the "best" quasilinear rationalization of her choices.

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Year of publication:	2003-02
Authors:	Brown, Donald J. ; Calsamiglia, Caterina
Institutions:	Cowles Foundation for Research in Economics, Yale University
Subject:	Quasilinear utilities \| Afriat inequalities \| Curve-fitting

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Extent:	application/pdf
Series:	Cowles Foundation Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The price is None Number 1399R 11 pages
Classification:	D11 - Consumer Economics: Theory ; D12 - Consumer Economics: Empirical Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005463936