We consider identification of nonparametric random utility models of multinomial choice using 'micro data,' i.e., observation of the characteristics and choices of individual consumers. Our model of preferences nests random coefficients discrete choice models widely used in practice with...

This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During the time period studied in this paper (1994 - 1998), Russia experienced two major economic crises. Both featured extreme movements in the real ruble-dollar exchange rate. The...

This paper reconstructs the history of experimental research on riskless choices during the period 1930-70. The experiments considered here regarded the derivation of indifference curves and the evaluation of the transitivity assumption, that is, matters that in neoclassical economics...

We present a household consumption model that accounts for caring household members, while allowing for noncooperative behavior in decisions on public goods. The intrahousehold consumption outcome critically depends on the degree of caring between the household members. By varying the degree of...

We follow Fuhrer (2000) in estimating via Maximum Likelihood a log-linear consumption function on UK data. In doing so we consider various habit formation assumptions. We show that a model of purely “external” habits as in Fuhrer (2000) fits the UK data remarkably well, and possibly in a...

This paper proves the existence of consumer’s and producer’s surplus, and their aggregate counterparts, without betting on some favorable price changes. Such surplus is the excess value over opportunity cost. Instead of hoping for favorable price change, a more positive attitude to obtain...

We investigate the effects of demographics, household expenditure and female employment on the allocation of household expenditure to consumer goods. For this purpose we estimate an Almost Ideal Demand System based on Dutch micro data. We find that interactions between household expenditure and...