Homothetic Efficiency
Theory and Applications
Bibliographic Data
| ID | 19418616 |
|---|---|
| Authors | Jan Heufer (Erasmus School of Economics and Tinbergen Institute, Erasmus University, 3000 DR Rotterdam, The Netherlands ()), Per Hjertstrand (Research Institute of Industrial Economics) |
| Year | 2019 |
| Volume | 37 |
| Issue | 2 |
| Pages | 235-247 |
| Publication date | 2019-04-03 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/07350015.2017.1319372 |
| OpenAlex | W2607862600 |
| Language | EN |
| Citations received | 3 |
| References cited | 45 |
We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is widely assumed (often implicitly) because it is a convenient and often useful restriction. However, this assumption is rarely tested, and data rarely satisfy testable conditions. To overcome this, we provide a way to estimate homothetic efficiency of consumption choices. The method provides considerably higher discriminatory power against random behavior than the commonly used Afriat efficiency. We use experimental and household survey data to illustrate how our approach is useful for different empirical applications and can provide greater predictive success
Econometrics · Economics · Homothetic transformation · Mathematical economics · Mathematical optimization · Microeconomics · Nonparametric statistics · Power consumption · Preference · Revealed preference · Computer Science · Consumer Market Behavior and Pricing · Economic and Environmental Valuation · Economics of Agriculture and Food Markets · Mathematics
The Construction of Utility Functions from Expenditure Data
The Nonparametric Approach to Demand Analysis
Altruism in Anonymous Dictator Games
Exact and superlative index numbers
Giving According to Garp
Testing for the Significance of Violations of Afriat's Inequalities
A Comparison of Nonparametric Tests of Weak Separability for Annual and Quarterly Data on Consumption, Leisure, and Money
Nonparametric Tests of Utility Maximization and Weak Separability for Consumption, Leisure and Money
Measuring Rationality with the Minimum Cost of Revealed Preference Violations
Properties of a measure of predictive success
The Money Pump as a Measure of Revealed Preference Violations
A Measure of Rationality and Welfare
Testing the Assumptions of Production Theory
A Note on the Pure Theory of Consumer's Behaviour
An Experiment on the Pure Theory of Consumer's Behaviour
On Testing the Utility Hypothesis
| Citations per year | 0.6 |
|---|---|
| Citation span | 2021 - 2025 (5) |
| Highly cited | No |