Best Nonparametric Bounds on Demand Responses

Richard Blundell (), Martin Browning and Ian Crawford

Econometrica, 2008, vol. 76, issue 6, 1227-1262

Abstract: This paper uses revealed preference inequalities to provide the tightest possible (best) nonparametric bounds on predicted consumer responses to price changes using consumer-level data over a finite set of relative price changes. These responses are allowed to vary nonparametrically across the income distribution. This is achieved by combining the theory of revealed preference with the semiparametric estimation of consumer expansion paths (Engel curves). We label these expansion path based bounds on demand responses as E-bounds. Deviations from revealed preference restrictions are measured by preference perturbations which are shown to usefully characterize taste change and to provide a stochastic environment within which violations of revealed preference inequalities can be assessed. Copyright 2008 The Econometric Society.

Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (80)

Downloads: (external link)
http://hdl.handle.net/10.3982/ECTA6069 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Best nonparametric bounds on demand responses (2005)
Working Paper: Best nonparametric bounds on demand responses (2005)
Working Paper: Best Nonparametric Bounds on Demand Responses (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:76:y:2008:i:6:p:1227-1262

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().