Is utility transferable? a revealed preference analysis

Laurens Cherchye, Thomas Demuynck and Bram De Rock

Theoretical Economics, 2015, vol. 10, issue 1

Abstract: The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with transferable utility. We also show that these conditions are testable by means of integer programming methods.

Keywords: Transferable utility hypothesis; generalized quasi-linearity; household consump- tion; nonparametric tests; revealed preferences (search for similar items in EconPapers)
JEL-codes: C14 D1 D11 D12 D13 (search for similar items in EconPapers)
Date: 2015-01-30
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Is utility transferable? A revealed preference analysis (2015)
Working Paper: Is utility transferable? A revealed preference analysis (2011)
Working Paper: Is Utility Transferable? A Revealed Preference Analysis (2011)
Working Paper: Is Utility Transferable? A Revealed Preference Analysis (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:1560

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