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Nonparametric tests of collectively rational consumption behavior: An integer programming procedure

Laurens Cherchye, Bram De Rock, Jeroen Sabbe (jeroensabbe@hotmail.com) and Frederic Vermeulen

Journal of Econometrics, 2008, vol. 147, issue 2, 258-265

Abstract: We present an IP-based nonparametric (revealed preference) testing procedure for rational consumption behavior in terms of a general collective model, which includes consumption externalities and public consumption. An empirical application to data drawn from the Russia Longitudinal Monitoring Survey (RLMS) demonstrates the practical usefulness of the procedure. Finally, we present extensions of the testing procedure to evaluate the goodness-of-fit (accounting for optimization error as well as measurement error) of the collective model subject to testing.

Keywords: Collective; consumption; model; Revealed; preferences; Nonparametric; rationality; tests; Integer; programming; (IP) (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (29)

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Working Paper: Nonparametric tests of collectively rational consumption behavior: an integer programming procedure (2008) Downloads
Working Paper: Nonparametric tests of collectively rational consumption behavior: an integer programming procedure (2008) Downloads
Working Paper: Nonparametric Tests of Collectively Rational Consumption Behavior: An Integer Programming Procedure (2008) Downloads
Working Paper: Nonparametric Tests of Collectively Rational Consumption Behavior: An Integer Programming Procedure (2008) Downloads
Working Paper: Nonparametric tests of collectively rational consumption behavior: an integer programming procedure (2008)
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