Effects of Structural Constraints and Costs on Choices
The paper argues that many choice situations involve a more complicated constraint structure than the standard linear budget constraint and consumption set. Some abstract examples are outlined and in each case some theoretical properties are derived, for example, of the comparative statics. One result of interest is to derive the direct utility choice problem, which generates quasihomothetic preferences. Some empirical examples for the generic cases are sketched for rural household choices, choices of costs of travel to work, a UK welfare benefit system.
Volume (Year): 24 (2010)
Issue (Month): s1 (December)
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