We provide a revealed preference analysis of the transferable utility hypothesis, which is widely used in economic … consistent with Pareto efficiency under transferable utility. Next, we show that these conditions are easily testable by means of … errors. Finally, we demonstrate the practical usefulness of our conditions by means of an application to Spanish consumption …

The transferable utility hypothesis underlies important theoretical results in household economics. We provide a … revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with … transferable utility. We also show that these conditions are testable by means of integer programming methods. …

We provide a revealed preference analysis of the transferable utility hypothesis, which is widely used in economic … consistent with Pareto efficiency under transferable utility. Next, we show that these conditions are easily testable by means of … errors. Finally, we demonstrate the practical usefulness of our conditions by means of an application to Spanish consumption …