Nonparametric Engel Curves and Revealed Preference
Martin Browning and
No 2002-04, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics
This paper applies revealed preference theory to the nonparametric statistical analysis of consumer demand. Knowledge of expansion paths is shown to improve the power of nonparametric tests of revealed preference. The tightest bounds on indifference surfaces and welfare measures are derived using an algorithm for which revealed preference conditions are shown to guarantee convergence. Nonparametric Engel curves are used to estimate expansion paths and provide a stochastic structure within which to examine the consistency of household level data and revealed preference theory. An application is made to a long time series of repeated cross-sections from the Family Expenditure Survey for Britain. The consistency of these data wit revealed preference theory is examined. For periods of consistency with revealed preference, tight bounds are placed on true cost of living indices.
Keywords: consumer demands; nonparametric regression; revealed preference (search for similar items in EconPapers)
JEL-codes: C14 C43 D12 (search for similar items in EconPapers)
Pages: 39 pages
References: Add references at CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.econ.ku.dk/cam/wp0910/wp0203/2002-04.pdf/ [301 Moved Permanently]--> https://www.econ.ku.dk/cam/wp0910/wp0203/2002-04.pdf/)
Journal Article: Nonparametric Engel Curves and Revealed Preference (2003)
Working Paper: Nonparametric Engel Curves and Revealed Preference (1998)
Working Paper: Non-parametric Engel curves and revealed preferences (1997)
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:kud:kuieca:2002_04
Access Statistics for this paper
More papers in CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics ï¿½ster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().