Approximately Rational Consumer Demand.

B-Tier
Journal: Economic Theory
Year: 1993
Volume: 3
Issue: 2
Pages: 217-41

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We define measures of violations of Slutsky symmetry and negative semidefiniteness and relate them to measures of revealed preference inconsistencies exhibited by nonoptimizing demand behavior. The degree of Slutsky asymmetry is shown to restrict the rate at which real income can rise everywhere along smooth loops in income and price space. The largest eigenvalue of the quadratic form of the Slutsky matrix is used to bound violations of the weak axiom. The sizes of the violations of either Slutsky condition are used to bound the distance between the given demand function and approximating functions that satisfy that Slutsky condition exactly.

Technical Details

RePEc Handle
repec:spr:joecth:v:3:y:1993:i:2:p:217-41
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25