Revealed Preferences in a Heterogeneous Population

Stefan Hoderlein and Jörg Stoye

The Review of Economics and Statistics, 2014, vol. 96, issue 2, 197-213

Abstract: This paper explores the empirical content of the weak axiom of revealed preference (WARP) for repeated cross-sections. In a heterogeneous population, the fraction of consumers who violate WARP is not point identified but can be bounded. These bounds, as well as some nonparametric refinements, correspond to intuitive behavioral assumptions if there are two goods. With three or more goods, such intuitions break down, and plausible assumptions can have counterintuitive implications. We also provide estimators and confidence regions. The empirical application reveals that in the British Family Expenditure Survey, upper bounds are frequently positive but lower bounds are not significantly so. © 2014 The President and Fellows of Harvard College and the Massachusetts Institute of Technology

Keywords: revealed preference; weak axiom; heterogeneity; partial identification; moment inequalities (search for similar items in EconPapers)
JEL-codes: C12 C14 D11 D12 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (73)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00397 link to full text PDF (application/pdf)

Related works:
Working Paper: Revealed Preferences in a Heterogeneous Population (2009)
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:tpr:restat:v:96:y:2014:i:2:p:197-213

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().