Revealed preference tests for weak separability: An integer programming approach

A-Tier
Journal: Journal of Econometrics
Year: 2015
Volume: 186
Issue: 1
Pages: 129-141

Authors (4)

Cherchye, Laurens (not in RePEc) Demuynck, Thomas (not in RePEc) De Rock, Bram (not in RePEc) Hjertstrand, Per (Institutet för Näringslivsfors...)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

We present the revealed preference conditions that characterize the data sets that are consistent with the maximization of a weakly separable utility function. We show that verifying these revealed preference conditions is np-hard. We also present an integer programming approach, which is particularly attractive in view of empirical analysis. We demonstrate the versatility of this integer programming approach by showing that it allows for testing homothetic separability and weak separability of the indirect utility function. We illustrate the practical usefulness of the approach by an empirical application to Spanish household consumption data.

Technical Details

RePEc Handle
repec:eee:econom:v:186:y:2015:i:1:p:129-141
Journal Field
Econometrics
Author Count
4
Added to Database
2026-01-25