Nonparametric Analysis of Random Utility Models: Testing

Jörg Stoye and Yuichi Kitamura

VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association

Abstract: This paper aims at formulating econometric tools for investigating stochastic rationality, using the Random Utility Models (RUM) to deal with unobserved heterogeneity nonparametrically. Theoretical implications of the RUM have been studied in the literature, and in particular this paper utilizes the axiomatic treatment by McFadden and Richter (McFadden and Richter, 1991, McFadden, 2005). A set of econometric methods to test stochastic rationality given a cross-sectional data is developed. This also provides means to conduct policy analysis with minimal assumptions. In terms of econometric methodology, it offers a procedure to deal with nonstandard features implied by inequality restrictions. This might be of interest on its own right, both theoretically and practically.

JEL-codes: C14 C33 D12 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/79753/1/VfS_2013_pid_574.pdf (application/pdf)

Related works:
Working Paper: Nonparametric analysis of random utility models: testing (2013)
Working Paper: Nonparametric Analysis of Random Utility Models: Testing (2013)
Working Paper: Nonparametric analysis of random utility models: testing (2013)
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:zbw:vfsc13:79753

Access Statistics for this paper

More papers in VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().