Best nonparametric bounds on demand responses.
This paper uses revealed preference inequalities to provide tight nonparametric bounds on consumer responses to price changes. Price responses are allowed to vary nonparametrically across the income distribution by exploiting microdata on consumer expenditures and incomes over a finite set of discre...
| Main Authors: | , , |
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| Format: | Working paper |
| Language: | English |
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Institute for Fiscal Studies
2005
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| _version_ | 1797085283272884224 |
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| author | Blundell, R Browning, M Crawford, I |
| author_facet | Blundell, R Browning, M Crawford, I |
| author_sort | Blundell, R |
| collection | OXFORD |
| description | This paper uses revealed preference inequalities to provide tight nonparametric bounds on consumer responses to price changes. Price responses are allowed to vary nonparametrically across the income distribution by exploiting microdata on consumer expenditures and incomes over a finite set of discrete relative price changes. This is achieved by combining the theory of revealed preference with the semiparametric estimation of consumer expansion paths (Engel curves). We label these expansion path based bounds as E-bounds. Deviations from revealed preference restrictions aremeasured by preference perturbations which are shown to usefully characterise taste change. |
| first_indexed | 2024-03-07T02:06:43Z |
| format | Working paper |
| id | oxford-uuid:9f403471-7653-4ff6-b642-f732467bd9f3 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T02:06:43Z |
| publishDate | 2005 |
| publisher | Institute for Fiscal Studies |
| record_format | dspace |
| spelling | oxford-uuid:9f403471-7653-4ff6-b642-f732467bd9f32022-03-27T00:55:59ZBest nonparametric bounds on demand responses.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:9f403471-7653-4ff6-b642-f732467bd9f3EnglishDepartment of Economics - ePrintsInstitute for Fiscal Studies2005Blundell, RBrowning, MCrawford, IThis paper uses revealed preference inequalities to provide tight nonparametric bounds on consumer responses to price changes. Price responses are allowed to vary nonparametrically across the income distribution by exploiting microdata on consumer expenditures and incomes over a finite set of discrete relative price changes. This is achieved by combining the theory of revealed preference with the semiparametric estimation of consumer expansion paths (Engel curves). We label these expansion path based bounds as E-bounds. Deviations from revealed preference restrictions aremeasured by preference perturbations which are shown to usefully characterise taste change. |
| spellingShingle | Blundell, R Browning, M Crawford, I Best nonparametric bounds on demand responses. |
| title | Best nonparametric bounds on demand responses. |
| title_full | Best nonparametric bounds on demand responses. |
| title_fullStr | Best nonparametric bounds on demand responses. |
| title_full_unstemmed | Best nonparametric bounds on demand responses. |
| title_short | Best nonparametric bounds on demand responses. |
| title_sort | best nonparametric bounds on demand responses |
| work_keys_str_mv | AT blundellr bestnonparametricboundsondemandresponses AT browningm bestnonparametricboundsondemandresponses AT crawfordi bestnonparametricboundsondemandresponses |