Demand Analysis with Partially Observed Prices
In empirical demand, industrial organization, and labor economics, prices are often unobserved or unobservable since they may only be recorded when an agent transacts. In the absence of any additional information, this partial observability of prices is known to lead to a number of identification problems. However, in this paper, we show that theory-consistent demand analysis remains feasible in the presence of partially observed prices, and hence partially observed implied budget sets, even if we are agnostic about the nature of the missing prices. Our revealed preference approach is empirically meaningful and easy to implement. We illustrate using simple examples.
|Date of creation:||Jun 2015|
|Date of revision:||Dec 2016|
|Contact details of provider:|| Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK|
Phone: +44 (0)116 252 2887
Fax: +44 (0)116 252 2908
Web page: http://www2.le.ac.uk/departments/economics
More information through EDIRC
|Order Information:|| Web: http://www2.le.ac.uk/departments/economics/research/discussion-papers Email: |
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.:
- Richard Blundell & Martin Browning & Laurens Cherchye & Ian Crawford & Bram De Rock & Frederic Vermeulen, 2015.
"Sharp for SARP: Nonparametric Bounds on Counterfactual Demands,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 7(1), pages 43-60, February.
- Richard Blundell & Martin Browning & Laurens Cherchye & Ian Crawford & Bram De Rock & Frederic Vermeulen, 2015. "Sharp for SARP: Nonparametric bounds on counterfactual demands," ULB Institutional Repository 2013/237105, ULB -- Universite Libre de Bruxelles.
- Walter Beckert & Richard Blundell, 2005.
"Heterogeneity and the nonparametric analysis of consumer choice: conditions for invertibility,"
CeMMAP working papers
CWP09/05, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Walter Beckert & Richard Blundell, 2008. "Heterogeneity and the Non-Parametric Analysis of Consumer Choice: Conditions for Invertibility," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 1069-1080.
- Matthew Polisson & John Quah, 2012.
"Revealed Preference in a Discrete Consumption Space,"
Discussion Papers in Economics
12/02, Department of Economics, University of Leicester, revised Feb 2012.
- Matthew Polisson & John K.-H. Quah, 2013. "Revealed Preference in a Discrete Consumption Space," American Economic Journal: Microeconomics, American Economic Association, vol. 5(1), pages 28-34, February.
- Matthew Polisson & John Quah, 2012. "Revealed preference in a discrete consumption space," IFS Working Papers W12/03, Institute for Fiscal Studies.
- 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.
- Richard Blundell & Dennis Kristensen & Rosa Matzkin, 2011. "Bounding quantile demand functions using revealed preference inequalities," CeMMAP working papers CWP21/11, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Brown, Bryan W & Walker, Mary Beth, 1989. "The Random Utility Hypothesis and Inference in Demand Systems," Econometrica, Econometric Society, vol. 57(4), pages 815-829, July.
- W. E. Diewert, 1973. "Afriat and Revealed Preference Theory," Review of Economic Studies, Oxford University Press, vol. 40(3), pages 419-425.
- Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, 05.
- P. A. Samuelson, 1947. "Some Implications of "Linearity."," Review of Economic Studies, Oxford University Press, vol. 15(2), pages 88-90.
- Browning, Martin, 1989. "A Nonparametric Test of the Life-Cycle Rational Expectations Hypothesis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 979-992, November.
When requesting a correction, please mention this item's handle: RePEc:lec:leecon:15/12. 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: (Mrs. Alexandra Mazzuoccolo)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.