A Monte Carlo Study of the Necessary and Sufficienct Conditions for Weak Separability
(2009) In Advances in Econometrics 24. p.151-182- Abstract
- Weak separability is an important concept in many fields of economic theory. This chapter uses Monte Carlo experiments to investigate the performance of newly developed nonparametric revealed preference tests for weak separability. A main finding is that the bias of the sequentially implemented test for weak separability proposed by Fleissig and Whitney (2003) is low. The theoretically unbiased Swofford and Whitney test (1994) is found to perform better than all sequentially implemented test procedures but is found to suffer from an empirical bias, most likely because of the complexity in executing the test procedure. As a further source of information, we also perform sensitivity analyses on the nonparametric revealed preference tests. It... (More)
- Weak separability is an important concept in many fields of economic theory. This chapter uses Monte Carlo experiments to investigate the performance of newly developed nonparametric revealed preference tests for weak separability. A main finding is that the bias of the sequentially implemented test for weak separability proposed by Fleissig and Whitney (2003) is low. The theoretically unbiased Swofford and Whitney test (1994) is found to perform better than all sequentially implemented test procedures but is found to suffer from an empirical bias, most likely because of the complexity in executing the test procedure. As a further source of information, we also perform sensitivity analyses on the nonparametric revealed preference tests. It is found that the Fleissig and Whitney test seems to be sensitive to measurement errors in the data. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1763378
- author
- Hjertstrand, Per LU
- organization
- publishing date
- 2009
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Advances in Econometrics
- volume
- 24
- pages
- 151 - 182
- publisher
- Elsevier
- external identifiers
-
- scopus:84856636076
- ISSN
- 0731-9053
- DOI
- 10.1108/S0731-9053(2009)0000024010
- language
- English
- LU publication?
- yes
- id
- 9bce68de-b6e4-4fbe-a4f6-4564bae3bd62 (old id 1763378)
- date added to LUP
- 2016-04-01 13:55:29
- date last changed
- 2022-02-26 23:53:56
@article{9bce68de-b6e4-4fbe-a4f6-4564bae3bd62,
abstract = {{Weak separability is an important concept in many fields of economic theory. This chapter uses Monte Carlo experiments to investigate the performance of newly developed nonparametric revealed preference tests for weak separability. A main finding is that the bias of the sequentially implemented test for weak separability proposed by Fleissig and Whitney (2003) is low. The theoretically unbiased Swofford and Whitney test (1994) is found to perform better than all sequentially implemented test procedures but is found to suffer from an empirical bias, most likely because of the complexity in executing the test procedure. As a further source of information, we also perform sensitivity analyses on the nonparametric revealed preference tests. It is found that the Fleissig and Whitney test seems to be sensitive to measurement errors in the data.}},
author = {{Hjertstrand, Per}},
issn = {{0731-9053}},
language = {{eng}},
pages = {{151--182}},
publisher = {{Elsevier}},
series = {{Advances in Econometrics}},
title = {{A Monte Carlo Study of the Necessary and Sufficienct Conditions for Weak Separability}},
url = {{http://dx.doi.org/10.1108/S0731-9053(2009)0000024010}},
doi = {{10.1108/S0731-9053(2009)0000024010}},
volume = {{24}},
year = {{2009}},
}