How Demanding Is the Revealed Preference Approach to Demand?
نویسندگان
چکیده
منابع مشابه
How Demanding Is the Revealed Preference Approach to Demand?
A well known problem with revealed preference methods is that when data are found to satisfy their restrictions it is hard to know whether this should be viewed as a triumph for economic theory, or a warning that these conditions are so undemanding that almost anything goes. This paper allows researchers to make this distinction. Our approach builds on theoretical support in the form of an axio...
متن کاملHow Revealing is Revealed Preference?∗
This paper addresses the following two key criticisms of the empirical application of revealed preference theory: When it does not reject, it doesn’t provide precise predictions; and when it does reject, it doesn’t help us characterise the nature of irrationality or the degree/direction of changing tastes. Recent developments in the application of RP theory are shown to have rendered these crit...
متن کاملHow costly is hospital quality? A revealed-preference approach.
We analyze the cost of quality improvement in hospitals, dealing with two challenges. Hospital quality is multidimensional and hard to measure, while unobserved productivity may influence quality supply. We infer the quality of hospitals in Los Angeles from patient choices. We then incorporate ‘revealed quality’ into a cost function, instrumenting with hospital demand. We find that revealed qua...
متن کاملPresidential Address: How Revealing is Revealed Preference?
This lecture address the following two key criticisms of the empirical application of revealed preference theory: When the RP conditions do not reject, they do not provide precise predictions; and when they do reject, they do not help characterize the nature of irrationality or the degree/direction of changing tastes. Recent developments in the application of RP theory are shown to have rendere...
متن کاملImproving Revealed Preference Bounds on Demand Responses
There are three key dimensions by which revealed preference bounds on consumer demand responses to price variation can be improved. The first relates to the improvements that arise from using expansion paths for given relative prices, E-bounds. The second concerns the addition of new price information. Thirdly, there are improvements due to assuming separability. Our previous research has exami...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Review
سال: 2011
ISSN: 0002-8282
DOI: 10.1257/aer.101.6.2782