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Aggregation without the aggravation? Nonparametric analysis of the representative consumer

  • Laurens CHERCHYE
  • Ian CRAWFORD
  • Bram DE ROCK
  • Frederic VERMEULEN

In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily and without the need for auxilliary parametric or statistical assumptions. We investigate the application of our characterisation by means of a balanced microdata panel survey. Our findings provide robust evidence against the existence of a representative consumer for our data.

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Paper provided by KU Leuven, Faculty of Economics and Business, Department of Economics in its series Working Papers Department of Economics with number ces11.36.

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Date of creation: Dec 2011
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Handle: RePEc:ete:ceswps:ces11.36
Contact details of provider: Web page: http://feb.kuleuven.be/Economics/

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