Revealed preference tests for consistency with weakly separable indirect utility
(2012) In Theory and Decision 72(2). p.245-256- Abstract
- Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for... (More)
- Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for consistency with revealed preference conditions for minimization and weak separability of the indirect utility function. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1762708
- author
- Hjertstrand, Per LU and Swofford, James
- organization
- publishing date
- 2012
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Revealed preference - Indirect utility - Weak separability
- in
- Theory and Decision
- volume
- 72
- issue
- 2
- pages
- 245 - 256
- publisher
- Springer
- external identifiers
-
- wos:000299774200006
- scopus:84856764878
- ISSN
- 0040-5833
- DOI
- 10.1007/s11238-010-9226-3
- language
- English
- LU publication?
- yes
- id
- 281e0fbe-b045-4808-8e8c-2a270ac67381 (old id 1762708)
- date added to LUP
- 2016-04-01 14:40:58
- date last changed
- 2022-01-28 01:58:04
@article{281e0fbe-b045-4808-8e8c-2a270ac67381,
abstract = {{Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for consistency with revealed preference conditions for minimization and weak separability of the indirect utility function.}},
author = {{Hjertstrand, Per and Swofford, James}},
issn = {{0040-5833}},
keywords = {{Revealed preference - Indirect utility - Weak separability}},
language = {{eng}},
number = {{2}},
pages = {{245--256}},
publisher = {{Springer}},
series = {{Theory and Decision}},
title = {{Revealed preference tests for consistency with weakly separable indirect utility}},
url = {{http://dx.doi.org/10.1007/s11238-010-9226-3}},
doi = {{10.1007/s11238-010-9226-3}},
volume = {{72}},
year = {{2012}},
}