Tests for the consistency of consumer data
type: Item
instance of: scholarly article
title: Tests for the consistency of consumer data
zbMATH Open document ID: 0597.62115
DOI: 10.1016/0304-4076(85)90135-6
published in: Journal of Econometrics
publication date: 1985-01-01T00:00:00Z
review text: The authors develop non-parametric tests for the weak separability of a decision maker's utility function, given a finite body of price and quantity data. They try to make Afriat's non-parametric method for testing whether a finite body of price and quantity data is consistent with utility maximizing behaviour more accessible and they generalize some earlier tests proposed by \textit{S. N. Afriat} [The construction of separable utility functions from expenditure data. Mimeo, Univ. North Carolina, Chapel Hill/NC (1970)] and \textit{H. R. Varian} [Rev. Econ. Stud. 50, 99-110 (1983; Zbl 0515.90023)]. After a short introduction, in the second section of their article, the authors derive the Afriat conditions under stronger than necessary assumptions (concavity and differentiability) on the utility function. In the next two sections, they use these techniques to derive some tests for the utility function to be weakly separable and additively separable respectively. These new tests are generalizations of similar tests developed by Afriat and Varian. The last section contains general conclusions with regard to the theoretical significance of the newly proposed tests and to their practical applicability.
Mathematics Subject Classification ID: 62P20
Mathematics Subject Classification ID: 91B82
zbMATH DE Number: 3963051
zbMATH Keywords: additive separability
zbMATH Keywords: non-parametric tests
zbMATH Keywords: weak separability
zbMATH Keywords: utility function
zbMATH Keywords: Afriat conditions
zbMATH Keywords: concavity
zbMATH Keywords: differentiability
author: W. Erwin Diewert
author: Celik Parkan
MaRDI profile type: Publication
full work available at URL: 0304-4076(85)90135-6
OpenAlex ID: W2084091658
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description: scientific article; zbMATH DE number 3963051