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Aggregation without the aggravation? Nonparametric analysis of the representative consumer

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Author Info

  • Laurens Cherchye

    ()
    (Institute for Fiscal Studies and University of Leuven)

  • Ian Crawford

    ()
    (Institute for Fiscal Studies and University of Oxford)

  • Bram De Rock

    ()
    (Institute for Fiscal Studies)

  • 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 auxiliary 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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File URL: http://cemmap.ifs.org.uk/wps/cwp031212.pdf
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Bibliographic Info

Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP03/12.

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Date of creation: Jan 2012
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Handle: RePEc:ifs:cemmap:03/12

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  1. Donald J. Brown & Caterina Calsamiglia, 2005. "The Nonparametric Approach to Applied Welfare Analysis," Cowles Foundation Discussion Papers 1507, Cowles Foundation for Research in Economics, Yale University.
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Cited by:
  1. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 0. "Is utility transferable? a revealed preference analysis," Theoretical Economics, Econometric Society.

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