GARP violation, Economic Environment Distortions and Shadow Prices: Evidence from Household Expenditure Panel Data
This paper contributes to the discussion of the compatibility of consumers' behavior in "real" life with GARP. Within expenditure panel data we observe a relatively low rate of violation (240 out of 3630 households). We show that these violations do not imply an "irrational" behavior of the agents, but can be attributed to a change in the agents' choice conditions during a period of time, which includes a shift from a centrally planned towards a market oriented economy.
|Date of creation:||01 Jan 2010|
|Date of revision:|
|Publication status:||Published in Annales d'Economie et de Statistique, ADRES, 2010, Avril-Juin 2008 (90), pp.3-33|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00449463|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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