Narrow search
Showing 1 - 10 of 13,081
Cover Image
Afriat in the lab
Heufer, Jan; Bruggen, Paul van - 2016
Varian (1988) showed that the utility maximization hypothesis cannot be falsified when only a subset of goods is observed. We show that this result does not hold under the assumptions that unobserved prices and expenditures remain constant. These assumptions are naturally satisfied in laboratory...
Persistent link: https://www.econbiz.de/10011563010
Cover Image
A comment on revealed preference with a subset of goods
Bruggen, Paul van - 2016
Varian (1988) introduced an important proposition regarding restrictions on consumption data if observations of the quantities of a good are missing. In this paper, a simple counterexample is presented to show that the original proof is incorrect, and a new proof is provided. The new proof is...
Persistent link: https://www.econbiz.de/10011531115
Cover Image
Power against random expenditure allocation for revealed preference tests
Hjertstrand, Per - 2019
This paper proposes new power indices for revealed preference tests. The indices are based on a model of irrational consumption behavior where the consumer randomly allocates a certain fraction of expenditure. The methods allow a researcher to trace out the entire power curve against random...
Persistent link: https://www.econbiz.de/10012133131
Cover Image
Quasiconcave preferences and choices on a probability simplex : a nonparametric analysis
Heufer, Jan - 2010
A nonparametric approach is presented to test whether decisions on a probability simplex could be induced by quasiconcave preferences. Necessary and sufficient conditions are presented. If the answer is affirmative, the methods developed here allow to reconstruct bounds on indifference curves....
Persistent link: https://www.econbiz.de/10003950963
Cover Image
Individual versus aggregate income elasticities for heterogeneous populations
Paluch, Michal (contributor); Kneip, Alois (contributor);  … - 2007
This paper deals with different concepts of income elasticities of demand for a heterogenous population and the relationship between individual and aggregate elasticities is analyzed. In general, the aggregate elasticity is not equal to the mean of individual elasticities. The difference depends...
Persistent link: https://www.econbiz.de/10003576485
Cover Image
Generating random optimising choices
Heufer, Jan - 2012
Generalised Axiom of Revealed Preferences (GARP), that is, they are consistent with utility maximisation. The choices are drawn … from an approximate uniform distribution on the admissible region on each budget which ensures consistency with GARP, based … it can be used to approximate the power of tests for conditions for which GARP is a necessary but not sufficient …
Persistent link: https://www.econbiz.de/10009580101
Cover Image
Stochastic dominance and nonparametric comparative revealed risk aversion
Heufer, Jan - 2011
It is shown how to test revealed preference data on choices under uncertainty for consistency with first and second order stochastic dominance (FSD or SSD). The axiom derived for SSD is a necessary and sufficient condition for risk aversion. If an investor is risk averse, stochastic dominance...
Persistent link: https://www.econbiz.de/10009580236
Cover Image
Homothetic efficiency and test power : a non-parametric approach
Heufer, Jan; Hjertstrand, Per - 2015
We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is a useful restriction but data rarely satisfies testable conditions. To overcome this we provide a way to estimate homothetic efficiency of consumption choices. It...
Persistent link: https://www.econbiz.de/10010532589
Cover Image
Mutually consistent revealed preference bounds
Adams, Abi - 2015
Revealed preference restrictions are increasingly used to bound demand responses and as shape restrictions in nonparametric estimation exercises. However, the restrictions imposed are not sufficient for rationality when predictions are made at more than a single price regime. We highlight the...
Persistent link: https://www.econbiz.de/10011307801
Cover Image
Revealed preferences over risk and uncertainty
Polisson, Matthew; Quah, John K.-H.; Renou, Ludovic - 2015
Consider a finite data set where each observation consists of a bundle of contingent consumption chosen by an agent from a constraint set of such bundles. We develop a general procedure for testing the consistency of this data set with a broad class of models of choice under risk and under...
Persistent link: https://www.econbiz.de/10011345795