Showing 1 - 10 of 66
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of exact linear aggregation. This guarantees that aggregate demand can be written as a function of prices and aggregate income alone, while abstracting from...
Persistent link: https://www.econbiz.de/10010678204
We propose a collective labor supply model with household production that generalizes an original model of Blundell, Chiappori and Meghir (2005). In our model, adults’ individual preferences do not only depend on own leisure and individual private consumption of market goods. They also depend...
Persistent link: https://www.econbiz.de/10008765173
We develop a novel framework to analyze the structural implications of the marriage market for household consumption patterns. We start by defining a revealed preference characterization of efficient household consumption when the marriage is stable. In particular, stability means that the...
Persistent link: https://www.econbiz.de/10010752636
Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. These “i-bounds” generalize earlier results of Blundell, Browning and Crawford (2008). We show that their e-bounds are sharp under the Weak Axiom of Revealed Preference (WARP). They do not require...
Persistent link: https://www.econbiz.de/10010568467
We propose a method to identify bounds (i.e. set identification) on the sharing rule for a general collective household consumption model. Unlike the effects of distribution factors, it is well known that the level of the sharing rule cannot be uniquely identified without strong assumptions on...
Persistent link: https://www.econbiz.de/10010877054
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily...
Persistent link: https://www.econbiz.de/10010539126
We extend the nonparametric ‘revealed preference’ methodology for analyzing collective consumption behavior (with consumption externalities and public consumption), to render it useful for empirical applications that deal with welfare-related questions. First, we provide a nonparametric...
Persistent link: https://www.econbiz.de/10008516194
We provide a nonparametric ‘revealed preference’ characterization of rational household behavior in terms of the collective consumption model, while accounting for general (possibly non-convex) individual preferences. We establish a Collective Axiom of Revealed Preference (CARP), which...
Persistent link: https://www.econbiz.de/10005200724
There is a general interest in ranking performances (e.g., in sports or policy), which essentially implies aggregating several performance dimensions. The usual approach considers a 'cardinal' linear weighting of the different single-dimensional performance indicators. We present an alternative...
Persistent link: https://www.econbiz.de/10005770836
We compare the empirical performance of the unitary and the collective approach to modelling observed labour supply behaviour. Deviating from the mainstream literature, we conduct a nonparametric analysis, which avoids the distortive impact of an erroneously specified functional form for the...
Persistent link: https://www.econbiz.de/10005642222