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 discrete relative price changes. This is achieved by combining the …

In this paper we introduce price search decision to a life cycle model, and differentiate consumption from expenditure … consumption is around 15% smaller than the cross sectional variance of expenditure through out the life cycle. Price search plays …

In this paper, we differentiate consumption from expenditure by incorporating price search decision into an otherwise … time for price search. We first analytically show that under very general conditions, poorer (both income and wealth … the increase in expenditure inequality. We also show that the availability of price search option provides a large …