IDEAS home Printed from https://ideas.repec.org/p/ete/ceswps/ces11.12.html
   My bibliography  Save this paper

A revealed preference analysis of the rational addiction model

Author

Listed:
  • Thomas DEMUYNCK
  • Ewout VERRIEST

Abstract

We provide a revealed preference analysis of the rational addiction model. The revealed preference approach avoids the need to impose an, a priori unverifiable, functional form on the underlying utility function. Our results extend the previously established revealed preference characterizations for the life cycle model and the one-lag habits model. We show that our characterization is easily testable by means of linear programming methods and we demonstrate its practical usefulness by means of an application to Spanish household consumption data.

Suggested Citation

  • Thomas DEMUYNCK & Ewout VERRIEST, 2011. "A revealed preference analysis of the rational addiction model," Working Papers of Department of Economics, Leuven ces11.12, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:ces11.12
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/310743/1/DPS1112.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:ceswps:ces11.12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://feb.kuleuven.be/Economics/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.