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Consumer Demand Analysis According to GARP

Published online by Cambridge University Press:  10 May 2017

Julian M. Alston  and
James A. Chalfant
Julian M. Alston
Affiliation:
Department of Agricultural Economics, University of California, Davis
James A. Chalfant
Affiliation:
Department of Agricultural Economics, University of California, Davis
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The nonparametric approach to consumer-demand analysis—based on revealed-preference axioms—is reviewed. Particular attention is paid to questions of size and power of tests for consistency of data with the existence of a stable, well-behaved utility function that could have generated the data. An application to Australian meat demand is used to show how these notions can be quantified and how prior information about elasticities, following Sakong and Hayes, may be used to increase the power of the approach.

Type
Invited Presentation
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 21 , Issue 2 , October 1992 , pp. 125 - 139
Copyright
Copyright © 1992 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Thanks are due to Laura Blanciforti, Kathy Edgington, Dermot Hayes, Richard Howitt, Jerry Nishimoto, Phil Pardey, Yong Sakong, and Teresa Williams. The usual caveat applies, however. Giannini Foundation paper no. 1035 (for identification purposes only).

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