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Econometrica
Article
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Econometrica
Article . 2008 . Peer-reviewed
License: Wiley TDM
Data sources: Crossref
EconStor
Research . 2005
Data sources: EconStor
EconStor
Research . 2005
Data sources: EconStor
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Best Nonparametric Bounds on Demand Responses

Authors: Blundell, Richard; Browning, Martin; Crawford, Ian;

Best Nonparametric Bounds on Demand Responses

Abstract

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.

Countries
Denmark, United Kingdom
Keywords

Demand responses , relative prices , revealed preference , semiparametric regression , changing tastes, revealed preference, ddc:330, semiparametric regression, relative prices, demand responses; relative prices; revealed preference; semiparametric regression; changing tastes, changing tastes, Demand responses, relative prices, revealed preference, semiparametric regression, changing tastes, D12, Demand responses, C14, C43, jel: jel:D12, jel: jel:C43, jel: jel:C14

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
84
Top 10%
Top 10%
Average
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bronze
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