Approximately Rational Consumer Demand
We define measures of violations of Slutsky symmetry and negative semidefiniteness and relate them to measures of revealed preference inconsistencies exhibited by nonoptimizing demand behavior. The degree of Slutsky asymmetry is shown to restrict the rate at which real income can rise everywhere along smooth loops in income and price space. The largest eigenvalue of the quadratic form of the Slutsky matrix is used to bound violations of the weak axiom. The sizes of the violations of either Slutsky condition are used to bound the distance between the given demand function and approximating functions that satisfy that Slutsky condition exactly.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 3 (1993)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/199/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kihlstrom, Richard E & Mas-Colell, Andreu & Sonnenschein, Hugo, 1976. "The Demand Theory of the Weak Axiom of Revealed Preference," Econometrica, Econometric Society, vol. 44(5), pages 971-78, September.
- Russell, Thomas & Thaler, Richard, 1985. "The Relevance of Quasi Rationality in Competitive Markets," American Economic Review, American Economic Association, vol. 75(5), pages 1071-82, December.
- Akerlof, George A & Yellen, Janet L, 1985. "Can Small Deviations from Rationality Make Significant Differences to Economic Equilibria?," American Economic Review, American Economic Association, vol. 75(4), pages 708-20, September.
- Timothy J. Kehoe, 1985. "Multiplicity of Equilibria and Comparative Statics," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 119-147.
- Jerison, David & Jerison, Michael, 1992.
"Approximately rational consumer demand and ville cycles,"
Journal of Economic Theory,
Elsevier, vol. 56(1), pages 100-120, February.
- David Jerison & Michael Jerison, 1989. "Approximately Rational Consumer Demand and Ville Cycles," Discussion Paper Serie A 246, University of Bonn, Germany.
- Shafer, Wayne J., 1977. "Revealed preference cycles and the slutsky matrix," Journal of Economic Theory, Elsevier, vol. 16(2), pages 293-309, December.
- John Geanakoplos & Heracles M. Polemarchakis, 1982.
"On the Disaggregation of Excess Demand Functions,"
Cowles Foundation Discussion Papers
642, Cowles Foundation for Research in Economics, Yale University.
- Hildenbrand, Werner, 1989. "The Weak Axiom of Revealed Preference for Market Demand Is Strong," Econometrica, Econometric Society, vol. 57(4), pages 979-85, July.
- Debreu, Gerard, 1974. "Excess demand functions," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 15-21, March.
- Afriat, S N, 1973. "On a System of Inequalities in Demand Analysis: An Extension of the Classical Method," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 460-72, June.
- Koo, Anthony Y C & Hasenkamp, Georg, 1972. "Structure of Revealed Preference: Some Preliminary Evidence," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 724-44, July-Aug..
- Koch,Karl-Josef, 1987. "Revealed preference theory and mean demand," Discussion Paper Serie A 103, University of Bonn, Germany.
- Hurwicz, Leonid & Richter, Marcel K., 1979. "An integrability condition with applications to utility theory and thermodynamics," Journal of Mathematical Economics, Elsevier, vol. 6(1), pages 7-14, March.
- Sonnenschein, Hugo, 1973. "Do Walras' identity and continuity characterize the class of community excess demand functions?," Journal of Economic Theory, Elsevier, vol. 6(4), pages 345-354, August.
- Polterovich, Victor & Mityushin, Leonid, 1978. "Criteria for Monotonicity of Demand Functions," MPRA Paper 20097, University Library of Munich, Germany.
- Polemarchakis, H. M., 1979. "Is there an income effect?," Journal of Economic Theory, Elsevier, vol. 21(3), pages 380-388, December.
- Varian, Hal R., 1985. "Non-parametric analysis of optimizing behavior with measurement error," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 445-458.
- Hurwicz, Leonid & Richter, Marcel K, 1979. "Ville Axioms and Consumer Theory," Econometrica, Econometric Society, vol. 47(3), pages 603-19, May.
- Richter, Marcel K., 1979. "Duality and rationality," Journal of Economic Theory, Elsevier, vol. 20(2), pages 131-181, April.
- Jerison, Michael, 1984. "Aggregation and pairwise aggregation of demand when the distribution of income is fixed," Journal of Economic Theory, Elsevier, vol. 33(1), pages 1-31, June.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:3:y:1993:i:2:p:217-41. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.