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Testing Utility Maximization with Measurement Errors in the Data

Jones, Barry and Edgerton, David LU (2009) In Advances in Econometrics 24. p.199-236
Abstract
Revealed preference axioms provide a simple way of testing data from consumers or firms for consistency with optimizing behavior. The resulting non-parametric tests are very attractive, since they do not require any ad hoc functional form assumptions. A weakness of such tests, however, is that they are non-stochastic. In this paper, we provide a detailed analysis of two approaches that can be used to derive non-parametric tests for utility maximization, which can account for measurement errors in observed price or quantity data.
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author
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organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Non-Parametric Tests, GARP, Weak separability, Revealed Preference, Additive Separability, SARP, Measurement Errors
in
Advances in Econometrics
volume
24
pages
199 - 236
publisher
Elsevier
external identifiers
  • scopus:84856631337
ISSN
0731-9053
language
English
LU publication?
yes
id
bc5a1509-51da-4c7b-9a8c-5e8e40d8a8b8 (old id 1388399)
date added to LUP
2016-04-04 09:32:40
date last changed
2021-10-06 04:32:30
@article{bc5a1509-51da-4c7b-9a8c-5e8e40d8a8b8,
  abstract     = {Revealed preference axioms provide a simple way of testing data from consumers or firms for consistency with optimizing behavior. The resulting non-parametric tests are very attractive, since they do not require any ad hoc functional form assumptions. A weakness of such tests, however, is that they are non-stochastic. In this paper, we provide a detailed analysis of two approaches that can be used to derive non-parametric tests for utility maximization, which can account for measurement errors in observed price or quantity data.},
  author       = {Jones, Barry and Edgerton, David},
  issn         = {0731-9053},
  language     = {eng},
  pages        = {199--236},
  publisher    = {Elsevier},
  series       = {Advances in Econometrics},
  title        = {Testing Utility Maximization with Measurement Errors in the Data},
  volume       = {24},
  year         = {2009},
}