Best Nonparametric Bounds on Demand Responses.
This paper uses revealed preference inequalities to provide the tightest possible (best) nonparametric bounds on predicted consumer responses to price changes using consumer-level data over a finite set of relative price changes. These responses are allowed to vary nonparametrically across the incom...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
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Wiley
2008
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| _version_ | 1797087256839716864 |
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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 the tightest possible (best) nonparametric bounds on predicted consumer responses to price changes using consumer-level data over a finite set of relative price changes. These responses are allowed to vary nonparametrically across the income distribution. 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 on demand responses as E-bounds. Deviations from revealed preference restrictions are measured by preference perturbations which are shown to usefully characterize taste change and to provide a stochastic environment within which violations of revealed preference inequalities can be assessed. |
| first_indexed | 2024-03-07T02:33:15Z |
| format | Journal article |
| id | oxford-uuid:a7f0e12e-ee13-4d5a-ad06-8f6cfeb7f274 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T02:33:15Z |
| publishDate | 2008 |
| publisher | Wiley |
| record_format | dspace |
| spelling | oxford-uuid:a7f0e12e-ee13-4d5a-ad06-8f6cfeb7f2742022-03-27T02:57:56ZBest Nonparametric Bounds on Demand Responses.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:a7f0e12e-ee13-4d5a-ad06-8f6cfeb7f274EnglishDepartment of Economics - ePrintsWiley2008Blundell, RBrowning, MCrawford, IThis paper uses revealed preference inequalities to provide the tightest possible (best) nonparametric bounds on predicted consumer responses to price changes using consumer-level data over a finite set of relative price changes. These responses are allowed to vary nonparametrically across the income distribution. 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 on demand responses as E-bounds. Deviations from revealed preference restrictions are measured by preference perturbations which are shown to usefully characterize taste change and to provide a stochastic environment within which violations of revealed preference inequalities can be assessed. |
| 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 |