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Computational Inefficiency Of Nonparametric Tests For Consistency Of Data With Household Consumption

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  • Deb, Rahul

Abstract

Recently 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 Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2700.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:2700

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Related research

Keywords: Collective household models; intrahousehold allocation; revealed preference; nonparametric analysis; NP Completeness;

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Cited by:
  1. Anyck Dauphin & Abdel‐Rahmen El Lahga & Bernard Fortin & Guy Lacroix, 2011. "Are Children Decision‐Makers within the Household?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 121(553), pages 871-903, 06.
  2. Deb, Rahul, 2008. "Interdependent Preferences, Potential Games and Household Consumption," MPRA Paper 6818, University Library of Munich, Germany.

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