EconPapers    
Economics at your fingertips  
 

Homothetic Preferences Revealed

Jan (J.P.M.) Heufer () and Per Hjertstrand ()
Additional contact information
Jan (J.P.M.) Heufer: Erasmus University Rotterdam, Erasmus School of Economics; Tinbergen Institute, The Netherlands

No 17-103/I, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We propose a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects' preferences and to choose appropriate functional forms for parametric analysis. It can also be used to extend applications of the money metric function, such as parametric recoverability as introduced by Halevy et al. (2017). It can also improve nonparametric comparison of preferences as suggested by Heufer (2014).

Keywords: Graphical Analysis; Homotheticity; Money Metric Utility; Recoverability; Revealed Preference (search for similar items in EconPapers)
JEL-codes: C14 C91 D11 D12 (search for similar items in EconPapers)
Date: 2017-11-03
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://papers.tinbergen.nl/17103.pdf (application/pdf)

Related works:
Working Paper: Homothetic Preferences Revealed (2017) Downloads
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:tin:wpaper:20170103

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().

 
Page updated 2020-03-29
Handle: RePEc:tin:wpaper:20170103