Is utility transferable? A revealed preference analysis

L. Cherchye; T. Demuynck; B. de Rock

doi:10.3982/TE1560

Is utility transferable? A revealed preference analysis

L. Cherchye^*
, T. Demuynck
, B. de Rock

^*Corresponding author for this work

Microeconomics & Public Economics

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with transferable utility. We also show that these conditions are testable by means of integer programming methods.

Original language	English
Pages (from-to)	51-65
Number of pages	15
Journal	Theoretical Economics
Volume	10
Issue number	1
DOIs	https://doi.org/10.3982/TE1560
Publication status	Published - 1 Jan 2015

Keywords

Transferable utility hypothesis
generalized quasilinearity
household consumption
nonparametric tests
revealed preferences
NONPARAMETRIC APPROACH
PUBLIC-GOODS
CONSUMPTION
BEHAVIOR
THEOREM

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abstract = "The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with transferable utility. We also show that these conditions are testable by means of integer programming methods.",

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AB - The transferable utility hypothesis underlies important theoretical results in household economics. We provide a revealed preference framework for bringing this (theoretically appealing) hypothesis to observational data. We establish revealed preference conditions that must be satisfied for observed household consumption behavior to be consistent with transferable utility. We also show that these conditions are testable by means of integer programming methods.

KW - Transferable utility hypothesis

KW - generalized quasilinearity

KW - household consumption

KW - nonparametric tests

KW - revealed preferences

KW - NONPARAMETRIC APPROACH

KW - PUBLIC-GOODS

KW - CONSUMPTION

KW - BEHAVIOR

KW - THEOREM

U2 - 10.3982/TE1560

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Is utility transferable? A revealed preference analysis

Abstract

Keywords

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