Revealed Price Preference: Theory and Empirical Analysis

• 成果类型: Article
• 署名作者: Deb, Rahul; Kitamura, Yuichi; Quah, John K. H.; Stoye, Jorg
• 署名单位: University of Toronto; Yale University; Johns Hopkins University; National University of Singapore; Cornell University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdac041
• 发表日期: 2023
• 页码: 707-743
• 关键词: nonparametric analysis; welfare analysis; utility; models; SALIENCE; savings; canada

摘要

To determine the welfare implications of price changes in demand data, we introduce a revealed preference relation over prices. We show that the absence of cycles in this relation characterizes a consumer who trades off the utility of consumption against the disutility of expenditure. Our model can be applied whenever a consumer's demand over a strict subset of all available goods is being analysed; it can also be extended to settings with discrete goods and non-linear prices. To illustrate its use, we apply our model to a single-agent data set and to a data set with repeated cross-sections. We develop a novel test of linear hypotheses on partially identified parameters to estimate the proportion of the population who are revealed better off due to a price change in the latter application. This new technique can be used for non-parametric counterfactual analysis more broadly.