Heterogeneity and the non-parametric analysis of consumer choice: conditions for invertibility
Beckert, Walter and Blundell, R. (2008) Heterogeneity and the non-parametric analysis of consumer choice: conditions for invertibility. Review of Economic Studies 75 (4), pp. 1069-1080. ISSN 0034-6527.
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.
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics|
|Research Centre:||Commodities Finance Centre|
|Date Deposited:||01 Feb 2011 11:59|
|Last Modified:||07 Dec 2016 15:30|
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