Nonparametric Estimation of a Nonseparable Demand Function under the Slutsky Inequality Restriction

• 成果类型: Article
• 署名作者: Blundell, Richard; Horowitz, Joel; Parey, Matthias
• 署名单位: University of London; University College London; University of London; London School Economics & Political Science; Northwestern University; University of Essex
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00636
• 发表日期: 2017-05
• 页码: 291-304
• 关键词: household gasoline demand; hypothesis tests; identification; Heterogeneity; consumers; models

摘要

We present a method for consistent nonparametric estimation of a demand function with nonseparable unobserved taste heterogeneity subject to the shape restriction implied by the Slutsky inequality. We use the method to estimate gasoline demand in the United States. The results reveal differences in behavior between heavy and moderate gasoline users. They also reveal variation in the responsiveness of demand to plausible changes in prices across the income distribution. We extend our estimation method to permit endogeneity of prices. The empirical results illustrate the improvements in finite-sample performance of a nonparametric estimator from imposing shape restrictions based on economic theory.