GARP violation, economic environment distortions and shadow prices : Evidence from household expenditure panel data
AbstractThis paper contributes to the discussion of the compatibility of consumers' behavior in "real" life with GARP. Within expenditure panel data we observe a relatively low rate of violation (240 out of 3630 households). We show that these violations do not imply an "irrational" behavior of the agents, but can be attributed to a change in the agents' choice conditions during a period of time, which includes a shift from a centrally planned towards a market oriented economy.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 09020.
Length: 38 pages
Date of creation: Apr 2009
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GARP; shadow prices.;
Other versions of this item:
- Marc-Arthur DIAYE & François GARDES & Christophe STARZEC, 2008. "GARP violation, Economic Environment Distortions and Shadow Prices: Evidence from Household Expenditure Panel Data," Annales d'Economie et de Statistique, ENSAE, issue 90, pages 3-33.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
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