Demand Systems with and without Errors

S-Tier
Journal: American Economic Review
Year: 2001
Volume: 91
Issue: 3
Pages: 611-618

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Revealed preference theory assumes that each consumer has demands that are rational, meaning that they arise from the maximization of his or her own utility function. In contrast, econometric or statistical demand models assume that each consumer's demands equal a rational systematic component derived from a common utility function, plus an individual-specific, additive error term. This paper reconciles these differences, by providing necessary and sufficient conditions for rationality of statistical demand models given individual consumer rationality.

Technical Details

RePEc Handle
repec:aea:aecrev:v:91:y:2001:i:3:p:611-618
Journal Field
General
Author Count
1
Added to Database
2026-01-25