We provide a revealed preference analysis of the transferable utility hypothesis, which is widely used in economic models. First, we establish revealed preference conditions that must be satisfied for observed group behavior to be consistent with Pareto efficiency under transferable utility....

We develop a non-linear, quantitative macroeconomic model with heterogeneous monopolistic financial intermediaries, incomplete markets, default risk, endogenous bank entry, and aggregate uncertainty. The model generates a bank net worth distribution fluctuation problem analogous to the canonical...

The collective household model requires that household decisions result in Pareto efficient outcomes. While this assumption is falsifiable, these tests are often difficult to implement due to data limitations or insufficient statistical power. We identify a novel setting–multiple job...