Computational Inefficiency Of Nonparametric Tests For Consistency Of Data With Household Consumption
AbstractRecently Cherchye et al. (2007a) provided a nonparametric characterization of a general collective model for household consumption which includes externalities and public consumption. This characterization involved different necessary and sufficient conditions. We identify a special case of the household model for which their sufficiency conditions are also necessary. We show that verification of this sufficiency condition is NP Complete which provides justification for the parametric techniques used in the empirical literature.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 2700.
Date of creation: 2007
Date of revision:
Collective household models; intrahousehold allocation; revealed preference; nonparametric analysis; NP Completeness;
Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-14 (All new papers)
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- Anyck Dauphin & Abdel‐Rahmen El Lahga & Bernard Fortin & Guy Lacroix, 2011.
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- Deb, Rahul, 2008. "Interdependent Preferences, Potential Games and Household Consumption," MPRA Paper 6818, University Library of Munich, Germany.
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