Heterogeneity and the Non-Parametric Analysis of Consumer Choice: Conditions for Invertibility.

This paper considers structural non-parametric random utility models for continuous choice variables with unobserved heterogeneity. We provide sufficient conditions on random preferences to yield reduced-form systems of non-parametric stochastic demand functions that allow global invertibility betwe...

Descripción completa

Detalles Bibliográficos
Publicado en:Review of Economic Studies Vol. 75; no. 4; pp. 1069 - 1081
Autores principales: Beckert, Walter, Blundell, Richard
Formato: Artículo
Publicado: Oxford University Press / UK October 2008
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This paper considers structural non-parametric random utility models for continuous choice variables with unobserved heterogeneity. We provide sufficient conditions on random preferences to yield reduced-form systems of non-parametric stochastic demand functions that allow global invertibility between demands and non-separable unobserved heterogeneity. Invertibility is essential for global identification of structural consumer demand models, for the existence of well-specified probability models of choice and for the non-parametric analysis of revealed stochastic preference. We distinguish between new classes of models in which heterogeneity is separable and non-separable in the marginal rates of substitution, respectively. Reprinted by permission of the publisher.