The main objective of consumer theory is to determine the impact on observable demands for commodities of alternative assumptions on the objectives, on the behavioral rules of the consumer, and on the constraints that they faces while making a decision. The chapter explains that the traditional...

In this paper four versions of differential demand systems are compared empirically: namely, the Rotterdam system, a version of the Almost Ideal Demand (AID) system, the Central Bureau of Statistics (CBS) system, and the NBR system. These systems share common right-hand sides but differ in the...

Falsification of nontrivial empirical statements, of a statistical nature or not, is basically destructive. No wonder that it is rarely practiced. Rather than then abandoning a rejected null hypothesis, one tries to salvage it by looking for reasons why the rejection of an otherwise credible,...