Revealed Price Preference: Theory and Empirical Analysis

• Tác giả: Rahul Deb, Yuichi Kitamura, John K. -H Quah, Jörg Stoye
• Ngôn ngữ: eng
• Ký hiệu phân loại: 003.52 Perception theory
• Thông tin xuất bản: 2018
• Bộ sưu tập: Metadata
• ID: 161734

Tóm tắt

 Comment: 77 pagesTo determine the welfare implications of price changes in demand data, we introduce a revealed preference relation over prices. We show that the absence of cycles in this relation characterizes a consumer who trades off the utility of consumption against the disutility of expenditure. Our model can be applied whenever a consumer's demand over a strict subset of all available goods is being analyzed
  it can also be extended to settings with discrete goods and nonlinear prices. To illustrate its use, we apply our model to a single-agent data set and to a data set with repeated cross-sections. We develop a novel test of linear hypotheses on partially identified parameters to estimate the proportion of the population who are revealed better off due to a price change in the latter application. This new technique can be used for nonparametric counterfactual analysis more broadly.