Revealed Price Preference: Theory and Stochastic Testing
Rahul Deb (),
John Quah () and
Working Papers from University of Toronto, Department of Economics
We develop a model of demand where consumers trade-off the utility of consumption against the disutility of expenditure. This model is appropriate whenever a consumer's demand over a strict subset of all available goods is being analyzed. Data sets consistent with this model are characterized by the absence of revealed preference cycles over prices. The model is readily generalized to the random utility setting, for which we develop nonparametric statistical tests. Our application on national household consumption data provides support for the model.
Keywords: revealed preference; random utility; nonparametric testing; nonseparability; welfare analysis; moment selection (search for similar items in EconPapers)
JEL-codes: D11 D12 D60 (search for similar items in EconPapers)
Pages: Unknown pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
https://www.economics.utoronto.ca/public/workingPapers/tecipa-582.pdf Main Text (application/pdf)
Working Paper: Revealed Price Preference: Theory and Stochastic Testing (2017)
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:tor:tecipa:tecipa-582
Access Statistics for this paper
More papers in Working Papers from University of Toronto, Department of Economics 150 St. George Street, Toronto, Ontario.
Bibliographic data for series maintained by RePEc Maintainer ().