Sharp for SARP: Nonparametric Bounds on Counterfactual Demands

• 成果类型: Article
• 署名作者: Blundell, Richard; Browning, Martin; Cherchye, Laurens; Crawford, Ian; De Rock, Bram; Vermeulen, Frederic
• 署名单位: University of London; University College London; University of Oxford; KU Leuven; University of Oxford; Universite Libre de Bruxelles; KU Leuven
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20130150
• 发表日期: 2015
• 页码: 43-60
• 关键词: Revealed preference; engel curves; responses

摘要

Sharp nonparametric bounds are derived for counterfactual demands and Hicksian compensating and equivalent variations. These i-bounds refine and extend earlier results of Blundell, Browning, and Crawford (2008). We show that their bounds are sharp under the Weak Axiom of Revealed Preference (WARP) since they do not require transitivity. The new bounds are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures. The new bounds on welfare measures are shown to be operationalized through algorithms that are easy to implement.