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Revealed preference tests for consistency with weakly separable indirect utility

Hjertstrand, Per LU and Swofford, James (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)
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author
organization
publishing date
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
2011-01-21 14:42:50
date last changed
2017-01-01 06:22:42
@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},
  keyword      = {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},
  volume       = {72},
  year         = {2012},
}