Testing Utility Maximization with Measurement Errors in the Data
(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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1388399
- author
- Jones, Barry and Edgerton, David LU
- organization
- publishing date
- 2009
- 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
- 2022-01-29 18:21:46
@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}}, keywords = {{Non-Parametric Tests; GARP; Weak separability; Revealed Preference; Additive Separability; SARP; Measurement Errors}}, 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}}, }