Slutsky matrix norms: The size, classification, and comparative statics of bounded rationality

• 成果类型: Article
• 署名作者: Aguiar, Victor H.; Serrano, Roberto
• 署名单位: Western University (University of Western Ontario); Brown University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.08.007
• 发表日期: 2017
• 页码: 163-201
• 关键词: Consumer theory; Slutsky matrix function; bounded rationality; comparative statics; Sparse-max consumer; Collective model

摘要

Given any observed demand behavior-by means of a demand function, we quantify by how much it departs from rationality. The measure of the gap is the smallest Frobenius norm of the correcting matrix function that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative semidefiniteness). As a result, we are able to suggest a useful classification of departures from rationality, corresponding to three anomalies: inattentiveness to changes in purchasing power, money illusion, and violations of the compensated law of demand. Errors in comparative-statics predictions from assuming rationality are decomposed as the sum of a behavioral error (due to the agent) and a specification error (due to the modeller). Illustrations are provided using several bounded rationality models. (C) 2017 Elsevier Inc. All rights reserved.