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Events

Home Events
“Revealed Price Preference: Theory and Empirical Analysis” by Prof. John K.H. Quah
23Apr

“Revealed Price Preference: Theory and Empirical Analysis” by Prof. John K.H. Quah

Monday, 23 April 2018 | 4:30pm - 6pm
KK910
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Economics Seminar
Author:
  • John Quah
    Johns Hopkins

 

We develop a model of demand where consumers trade-off the utility of consumption against the disutility of expenditure. This model is appropriate whenever a consumer’s demand over a strict subset of all available goods is being analyzed. Data sets consistent with this model are characterized by the absence of revealed preference cycles over prices. For the random utility extension of the model, we devise nonparametric statistical procedures for testing and welfare comparisons. The latter requires the development of novel tests of linear hypotheses for partially identified parameters. Our applications on national household expenditure data provide support for the model and yield informative bounds concerning welfare rankings across different prices.

  

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“Revealed Price Preference: Theory and Empirical Analysis” by Prof. John K.H. Quah
Monday, 23 April 20184:30pm - 6pm
KK910
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