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Aggregation without the aggravation? Nonparametric analysis of the representative consumer

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  • Laurens CHERCHYE
  • Ian CRAWFORD
  • Bram DE ROCK
  • Frederic VERMEULEN

Abstract

In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily and without the need for auxilliary parametric or statistical assumptions. We investigate the application of our characterisation by means of a balanced microdata panel survey. Our findings provide robust evidence against the existence of a representative consumer for our data.

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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces11.36.

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Date of creation: Dec 2011
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Handle: RePEc:ete:ceswps:ces11.36

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Cited by:
  1. Christos Koulovatianos & Carsten Schröder & Ulrich Schmidt, 2014. "Confronting the Representative Consumer with Household-Size Heterogeneity," CREA Discussion Paper Series 14-13, Center for Research in Economic Analysis, University of Luxembourg.
  2. Cherchye, L.J.H. & Demuynck, T. & Rock, B. de, 2011. "Is Utility Transferable? A Revealed Preference Analysis," Discussion Paper 2011-018, Tilburg University, Center for Economic Research.

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