Improving revealed preference bounds on demand responses

• 成果类型: Article; Proceedings Paper
• 署名作者: Blundell, Richard; Browning, Martin; Crawford, Ian
• 署名单位: University of London; University College London; IFS; University of Oxford; University of Surrey
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2007.00460.x
• 发表日期: 2007
• 页码: 1227-1244
• 关键词: engel curves; systems

摘要

There are three key dimensions by which revealed preference bounds on consumer demand responses can be improved. The first relates to the improvements that arise from using expansion paths for given relative prices, E-bounds. The second concerns the addition of new price information. Thirdly, there are improvements due to assuming separability. Our previous research has examined the first two cases. In this article, we show how to impose separability assumptions within a fully nonparametric analysis and distinguish between weak and homothetic separability. We also apply these ideas to the analysis of demand responses using United Kingdom household level data.