Blundell, Richard W.; Horowitz, Joel; Parey, Matthias - 2011
This paper develops a new method for estimating a demand function and the welfare consequences of price changes. The … method is applied to gasoline demand in the U.S. and is applicable to other goods. The method uses shape restrictions derived … from economic theory to improve the precision of a nonparametric estimate of the demand function. Using data from the U …