EconPapers    
Economics at your fingertips  
 

General Revealed Preference Tests of Weak Separability and Utility Maximization with Incomplete Adjustment

Per Hjertstrand (), James L. Swofford () and Gerald A. Whitney ()
Additional contact information
James L. Swofford: Department of Economics and Finance, Postal: University of South Alabama
Gerald A. Whitney: Department of Economics and Finance, Postal: University of New Orleans

No 1327, Working Paper Series from Research Institute of Industrial Economics

Abstract: We propose more general non-parametric revealed preference tests for weak separability and utility maximization with incomplete adjustment. Hence, these procedures account for a decision maker’s inability to adjust his optimal allocation of the demanded goods and assets. Incomplete adjustment is especially important when modelling preferences of durable goods and assets. The procedures are based on a computationally attractive integer programming approach. Two empirical applications show that it is important to account for incomplete adjustment in consumer demand models of durable consumption goods and monetary assets.

Keywords: Aggregation; Incomplete Adjustment; Revealed Preference; Weak Separability (search for similar items in EconPapers)
JEL-codes: C14 C60 D01 D10 E40 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2020-03-25
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.ifn.se/wfiles/wp/wp1327.pdf Full text (application/pdf)

Related works:
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:hhs:iuiwop:1327

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().

 
Page updated 2020-07-25
Handle: RePEc:hhs:iuiwop:1327