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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....
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The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for...
Persistent link: https://www.econbiz.de/10011674052
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....
Persistent link: https://www.econbiz.de/10014185457
We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited …-cyclical acceptance rates drive a wedge between meeting and hiring rates, explaining fluctuations in matching efficiency. Quantitatively …, our model replicates the joint behavior of unemployment rates and matching efficiency observed since the Great Recession. …
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similar characteristics. This difference in earnings can be explained by the compensating wage differential theory when self …
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