Goods Versus Characteristics: Dimension Reduction and Revealed Preference
Matthew Polisson ()
No 11/44, Discussion Papers in Economics from Department of Economics, University of Leicester
This paper compares the goods and characteristics models of the consumer within a non-parametric revealed preference framework. Of primary interest is to make a comparison on the basis of predictive success that takes into account dimension reduction. This allows us to nonparametrically identify the model which best fits the data. We implement these procedures on household panel data from the UK milk market. The primary result is that the better fit of the characteristics model is entirely attributable to dimension reduction.
Keywords: Characteristics; demand; dimension reduction; nested models; revealed preference (search for similar items in EconPapers)
JEL-codes: D11 D12 (search for similar items in EconPapers)
Date: 2011-09, Revised 2011-12
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Working Paper: Goods versus characteristics: dimension reduction and revealed preference (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:lec:leecon:11/44
Ordering information: This working paper can be ordered from
http://www2.le.ac.uk ... ch/discussion-papers
Access Statistics for this paper
More papers in Discussion Papers in Economics from Department of Economics, University of Leicester
Address: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
Contact information at EDIRC.
Series data maintained by Mrs. Alexandra Mazzuoccolo ().