Sharp for SARP: nonparametric bounds on the behavioural and welfare effects of price changes
Richard Blundell (),
Laurens Cherchye (),
Ian Crawford (),
Bram De Rock and
Working Papers Department of Economics from KU Leuven, Faculty of Economics and Business, Department of Economics
Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. These “i-bounds” generalize earlier results of Blundell, Browning and Crawford (2008). We show that their e-bounds are sharp under the Weak Axiom of Revealed Preference (WARP). They do not require transitivity. The new i-bounds are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures. The new bounds on welfare measures are shown to be operationalized through algorithms that are easy to implement.
New Economics Papers: this item is included in nep-ltv
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Working Paper: Sharp for SARP: Nonparametric bounds on the behavioural and welfare effects of price changes (2012)
Working Paper: Sharp for SARP: Nonparametric Bounds on the Behavioural and Welfare Effects of Price Changes (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: https://EconPapers.repec.org/RePEc:ete:ceswps:ces12.11
Access Statistics for this paper
More papers in Working Papers Department of Economics from KU Leuven, Faculty of Economics and Business, Department of Economics
Bibliographic data for series maintained by library EBIB ().