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Aggregation without the aggravation? Nonparametric analysis of the representative consumer

  • Laurens Cherchye

    ()

    (Institute for Fiscal Studies and University of Leuven)

  • Ian Crawford

    ()

    (Institute for Fiscal Studies and University of Oxford)

  • Bram De Rock

    ()

    (Institute for Fiscal Studies)

  • 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 auxiliary 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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File URL: http://cemmap.ifs.org.uk/wps/cwp031212.pdf
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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP03/12.

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Date of creation: Jan 2012
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Handle: RePEc:ifs:cemmap:03/12
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  8. Pollak, Robert A, 1971. "Additive Utility Functions and Linear Engel Curves," Review of Economic Studies, Wiley Blackwell, vol. 38(116), pages 401-14, October.
  9. Cherchye, L.J.H. & de Rock, B. & Vermeulen, F.M.P., 2007. "The collective model of household consumption : A nonparametric characterization," Other publications TiSEM 0a104373-4fb6-4ef2-9d2b-2, Tilburg University, School of Economics and Management.
  10. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2011. "The revealed preference approach to collective consumption behavior: nonparametric testing and sharing rule recovery," ULB Institutional Repository 2013/98560, ULB -- Universite Libre de Bruxelles.
  11. Ian Crawford, 2004. "Necessary and sufficient conditions for latent separability," IFS Working Papers W04/17, Institute for Fiscal Studies.
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  13. Christopher Carroll, 2000. "Requiem For The Representative Consumer? Aggregate Implications Of Microeconomic Consumption Behavior," Computing in Economics and Finance 2000 320, Society for Computational Economics.
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  19. Cherchye, L.J.H. & de Rock, B. & Vermeulen, F.M.P., 2011. "The revealed preference approach to collective consumption behavior : Testing and sharing rule recovery," Other publications TiSEM 11c788ab-cf82-4759-a6a8-3, Tilburg University, School of Economics and Management.
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