arXiv 7 Sep 2020 · Econometrics · 3 citations (OpenAlex)
arXiv:2009.03379 · PDF · DOI · OpenAlex · Extracted main text
We propose a conceptual framework for counterfactual and welfare analysis for approximate models. Our key assumption is that model approximation error is the same magnitude at new choices as the observed data. Applying the framework to quasilinear utility, we obtain bounds on quantities at new prices using an approximate law of demand. We then bound utility differences between bundles and welfare differences between prices. All bounds are computable as linear programs. We provide detailed analytical results describing how the data map to the bounds including shape restrictions that provide a foundation for plug-in estimation. An application to gasoline demand illustrates the methodology.
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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 | Richard Blundell, Joel L Horowitz, and Matthias Parey (2012) Measuring the price responsiveness of gasoline demand: Economic shape restrictions and nonparametric demand estimation | 0.874 | 12 | 2 | 100% |
| 2 | Roy Allen and John Rehbeck (2020) Satisficing, aggregation, and quasilinear utility self | 0.843 | 15 | 9 | 60% |
| 3 | Roy Allen and John Rehbeck (2019) Identification with additively separable heterogeneity self | 0.843 | 5 | 3 | 60% |
| 4 | Herbert A Simon (1947) Administrative Behavior | 0.843 | 3 | 3 | 100% |
| 5 | Hal R Varian (1990) Goodness-of-fit in optimizing models | 0.644 | 4 | 2 | 50% |
| 6 | Raj Chetty (2012) Bounds on elasticities with optimization frictions: A synthesis of micro and macro evidence on labor supply | 0.644 | 2 | 2 | 100% |
| 7 | Matthew Masten and Alexandre Poirier (2019) Inference on breakdown frontiers | 0.644 | 2 | 2 | 100% |
| 8 | Daniel McFadden (1981) Econometric models of probabilistic choice | 0.644 | 2 | 2 | 100% |
| 9 | Hal R Varian (1982) The nonparametric approach to demand analysis | 0.585 | 3 | 1 | 100% |
| 10 | K Chiong, YW Hsieh, and Matthew Shum (2017) Counterfactual estimation in semiparametric discrete choice models | 0.511 | 3 | 2 | 33% |
Showing the top 10 of 69 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Consumer Welfare Under Individual Heterogeneity | 0.405 | 1 | 1 |