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Bounding quantile demand functions using revealed preference inequalities

  • Blundell, Richard
  • Kristensen, Dennis
  • Matzkin, Rosa

This paper develops a new approach to the estimation of consumer demand models with unobserved heterogeneity subject to revealed preference inequality restrictions. Particular attention is given to nonseparable heterogeneity. The inequality restrictions are used to identify bounds on counterfactual demand. A nonparametric estimator for these bounds is developed and asymptotic properties are derived. An empirical application using data from the UK Family Expenditure Survey illustrates the usefulness of the methods.

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Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 179 (2014)
Issue (Month): 2 ()
Pages: 112-127

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Handle: RePEc:eee:econom:v:179:y:2014:i:2:p:112-127
Contact details of provider: Web page: http://www.elsevier.com/locate/jeconom

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  2. Blundell, Richard & Kristensen, Dennis & Matzkin, Rosa, 2014. "Bounding quantile demand functions using revealed preference inequalities," Journal of Econometrics, Elsevier, vol. 179(2), pages 112-127.
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