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...

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Published in:Review of Economic Studies Vol. 75; no. 4; pp. 1069 - 1081
Main Authors: Beckert, Walter, Blundell, Richard
Format: Article
Published: Oxford University Press / UK October 2008
Subjects:
Online Access:View this record in EBSCOhost
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        10.1111/j.1467-937X.2008.00500.x
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        atl: Heterogeneity and the Non-Parametric Analysis of Consumer Choice: Conditions for Invertibility.
      aug:
        au:
          Beckert, Walter
          Blundell, Richard
      su:
        Consumer preferences
        Mathematical models
        Nonparametric statistics
        Utility theory
      sug:
        subj:
          Consumer preferences
          Mathematical models
          Nonparametric statistics
          Utility theory
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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