Bounding quantile demand functions using revealed preference inequalities

Richard Blundell (), Dennis Kristensen and Rosa Matzkin

Journal of Econometrics, 2014, vol. 179, issue 2, 112-127

Abstract: This paper develops a new approach to the estimation of consumer demand models with unobserved heterogeneity subject to revealed preference inequality restrictions. Particular attention is given to nonseparable heterogeneity. The inequality restrictions are used to identify bounds on counterfactual demand. A nonparametric estimator for these bounds is developed and asymptotic properties are derived. An empirical application using data from the UK Family Expenditure Survey illustrates the usefulness of the methods.

Keywords: Consumer behavior; Revealed preference; Bounds; Quantile regression (search for similar items in EconPapers)
JEL-codes: C20 D12 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (64)

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Working Paper: Bounding quantile demand functions using revealed preference inequalities (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:179:y:2014:i:2:p:112-127

DOI: 10.1016/j.jeconom.2014.01.005

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