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We present a revealed preference analysis of the testable implications of the Nash bargaining solution. Our specific focus is on a two-player game involving consumption decisions. We consider a setting in which the empirical analyst has information on both the threat points bundles and the...
Persistent link: https://www.econbiz.de/10013125550
We develop a revealed preference approach to analyze non-unitary consumption models with intrahousehold allocations deviating from the cooperative (or Pareto efficient) solution. At a theoretical level, we establish revealed preference conditions of household consumption models with varying...
Persistent link: https://www.econbiz.de/10013149448
We develop a revealed preference approach to analyze non-unitary consumption models with intrahousehold allocations deviating from the cooperative (or Pareto efficient) solution. At a theoretical level, we establish revealed preference conditions of household consumption models with varying...
Persistent link: https://www.econbiz.de/10013153659
We present a nonparametric revealed preference methodology for empirically analyzing collective consumption behavior. First, we introduce an integer programming (IP) methodology for testing data consistency with collective consumption models that account for publicly as well as privately...
Persistent link: https://www.econbiz.de/10013156456
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of exact linear aggregation. This guarantees that aggregate demand can be written as a function of prices and aggregate income alone, while abstracting from...
Persistent link: https://www.econbiz.de/10013083616
We present necessary and sufficient revealed preference conditions to verify whether a finite data set on nonlinear budget sets is consistent with the maximization of a quasi–concave utility function. Our results can be used to test for convexity of the underlying preference relation. We also...
Persistent link: https://www.econbiz.de/10013087736
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily...
Persistent link: https://www.econbiz.de/10013112780
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed reference characterization of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily and...
Persistent link: https://www.econbiz.de/10013117313
We define the empirical conditions on prices and incomes under which transitivity of preferences has specific testable implications. In particular, we set out necessary and sufficient requirements for budget sets under which consumption choices can violate SARP (Strong Axiom of Revealed...
Persistent link: https://www.econbiz.de/10013011359
We propose a collective labor supply model with household production that generalizes an original model of Blundell, Chiappori and Meghir (2005). In our model, adults' individual preferences do not only depend on own leisure and individual private consumption of market goods. They also depend on...
Persistent link: https://www.econbiz.de/10013132874