arXiv 15 Jun 2016 · Mathematics — Statistics Theory · publishedEconometrica (2018) · 98 citations (OpenAlex)
arXiv:1606.04819 · PDF · DOI · OpenAlex · Extracted main text
This paper develops and implements a nonparametric test of Random Utility Models. The motivating application is to test the null hypothesis that a sample of cross-sectional demand distributions was generated by a population of rational consumers. We test a necessary and sufficient condition for this that does not rely on any restriction on unobserved heterogeneity or the number of goods. We also propose and implement a control function approach to account for endogenous expenditure. An econometric result of independent interest is a test for linear inequality constraints when these are represented as the vertices of a polyhedron rather than its faces. An empirical application to the U.K. Household Expenditure Survey illustrates computational feasibility of the method in demand problems with 5 goods.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Kawaguchi (2017) Testing rationality without restricting heterogeneity | 1.000 | 5 | 4 | 100% |
| 2 | McFadden (2005) Revealed Stochastic Preference: A Synthesis | 1.000 | 5 | 4 | 100% |
| 3 | Andrews and Soares (2010) Inference for Parameters Defined by Moment Inequalities Using Generalized Moment Selection | 0.941 | 6 | 5 | 83% |
| 4 | Deb, Kitamura, Quah, and Stoye (2018) Revealed Price Preference: Theory and Empirical Analysis | 0.928 | 4 | 3 | 100% |
| 5 | Hubner (2018) It’s complicated: A Nonparametric Test of Preference Stability between Singles and Couples | 0.843 | 3 | 3 | 100% |
| 6 | Manski (2014) Identification of income�leisure preferences and evaluation of income tax policy | 0.843 | 3 | 3 | 100% |
| 7 | McFadden and Richter (1991) Stochastic rationality and revealed stochastic preference | 0.737 | 3 | 3 | 67% |
| 8 | Bugni, Canay, and Shi (2015) Specification tests for partially identified models defined by moment inequalities | 0.644 | 2 | 2 | 100% |
| 9 | Canay (2010) \ inference for partially identified models: Large deviations optimality and bootstrap validity | 0.644 | 2 | 2 | 100% |
| 10 | Lazzati, Quah, and Shirai (2018) Nonparametric Analysis of Monotone Choice | 0.644 | 2 | 2 | 100% |
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arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.