Revealed Price Preference: Theory and Empirical Analysis
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arXiv
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| Autores principales: | , , , |
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| Formato: | Preprint |
| Publicado: |
2018
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| Acceso en línea: | |
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| _version_ | 1866916308165066752 |
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| author | Deb, Rahul Kitamura, Yuichi Quah, John K. -H. Stoye, Jörg |
| author_facet | Deb, Rahul Kitamura, Yuichi Quah, John K. -H. Stoye, Jörg |
| contents | To determine the welfare implications of price changes in demand data, we introduce a revealed preference relation over prices. We show that the absence of cycles in this relation characterizes a consumer who trades off the utility of consumption against the disutility of expenditure. Our model can be applied whenever a consumer's demand over a strict subset of all available goods is being analyzed; it can also be extended to settings with discrete goods and nonlinear prices. To illustrate its use, we apply our model to a single-agent data set and to a data set with repeated cross-sections. We develop a novel test of linear hypotheses on partially identified parameters to estimate the proportion of the population who are revealed better off due to a price change in the latter application. This new technique can be used for nonparametric counterfactual analysis more broadly. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_1801_02702 |
| institution | arXiv |
| publishDate | 2018 |
| record_format | arxiv |
| spellingShingle | Revealed Price Preference: Theory and Empirical Analysis Deb, Rahul Kitamura, Yuichi Quah, John K. -H. Stoye, Jörg Econometrics Theoretical Economics To determine the welfare implications of price changes in demand data, we introduce a revealed preference relation over prices. We show that the absence of cycles in this relation characterizes a consumer who trades off the utility of consumption against the disutility of expenditure. Our model can be applied whenever a consumer's demand over a strict subset of all available goods is being analyzed; it can also be extended to settings with discrete goods and nonlinear prices. To illustrate its use, we apply our model to a single-agent data set and to a data set with repeated cross-sections. We develop a novel test of linear hypotheses on partially identified parameters to estimate the proportion of the population who are revealed better off due to a price change in the latter application. This new technique can be used for nonparametric counterfactual analysis more broadly. |
| title | Revealed Price Preference: Theory and Empirical Analysis |
| topic | Econometrics Theoretical Economics |
| url | https://arxiv.org/abs/1801.02702 |