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Best nonparametric bounds on demand responses

Blundell, Richard; Browning, Martin; Crawford, Ian - 2005

This paper uses revealed preference inequalities to provide tight nonparametric bounds on consumer responses to price changes. Price responses are allowed to vary nonparametrically across the income distribution by exploiting microdata on consumer expenditures and incomes over a finite set of...

Persistent link: https://www.econbiz.de/10010285351

A Geometric Measure for the Violation of Utility Maximization

Heufer, Jan - 2008

function. If a consumer is inconsistent with GARP, we might need a measure for the severity of inconsistency. One widely used …

Persistent link: https://www.econbiz.de/10010271072

Power against random expenditure allocation for revealed preference tests

Hjertstrand, Per - 2019

This paper proposes new power indices for revealed preference tests. The indices are based on a model of irrational consumption behavior where the consumer randomly allocates a certain fraction of expenditure. The methods allow a researcher to trace out the entire power curve against random...

Persistent link: https://www.econbiz.de/10012145534

Testing Axioms of Revealed Preference in Stata

Demetry, Marcos; Hjertstrand, Per; Polisson, Matthew - 2020

This paper introduces the Stata commands checkax, aei, and powers as a bundle within the package rpaxioms. The first command allows the user to test whether consumer demand data satisfy a number of revealed preference axioms at a given efficiency level, the second command calculates measures of...

Persistent link: https://www.econbiz.de/10012615410

Afriat in the Lab

Heufer, Jan; van Bruggen, Paul - 2016

Varian (1988) showed that the utility maximization hypothesis cannot be falsified when only a subset of goods is observed. We show that this result does not hold under the assumptions that unobserved prices and expenditures remain constant. These assumptions are naturally satisfied in laboratory...

Persistent link: https://www.econbiz.de/10011586710

Generating Random Optimising Choices

Heufer, Jan - 2012

Generalised Axiom of Revealed Preferences (GARP), that is, they are consistent with utility maximisation. The choices are drawn … from an approximate uniform distribution on the admissible region on each budget which ensures consistency with GARP, based … it can be used to approximate the power of tests for conditions for which GARP is a necessary but not sufficient …

Persistent link: https://www.econbiz.de/10010287336

Best nonparametric bounds on demand responses

Blundell, Richard; Browning, Martin; Crawford, Ian - 2005

Persistent link: https://www.econbiz.de/10010318455

Is Inflation Heterogeneously Distributed Among Income Groups?

Mehrhoff, Jens; Breuer, Claus Christian - 2010

Inflation rates of more than 3% in Germany during some months in the spring and summer of 2008 have been giving rise to claims from both politicians and the unions for social measures for welfare recipients. It is argued that the burden of inflation is heterogeneously distributed among different...

Persistent link: https://www.econbiz.de/10010270762

Owner-occupied housing costs and bias in the Irish consumer price index

McCarthy, Colm - 2007

The treatment of owner-occupied housing costs is a recurring problem in the construction of consumer price indices, and there are competing methodologies. In the most widely-used Irish index, the Payments Approach, which attaches a weight to a term involving historical house prices and an...

Persistent link: https://www.econbiz.de/10010272360

A rental-equivalence index for owner-occupied housing in West Germany 1985 to 1998

Kurz, Claudia; Hoffmann, Johannes - 2004

In this paper, we review the German practice of imputing the costs of owner-occupied housing by increasing the relative weight of actual rents in the CPI. As the structure of owner-occupied housing differs substantially from that of rental housing, this variant of the imputation method may cause...

Persistent link: https://www.econbiz.de/10010295635