Aggregation Without the Aggravation? Nonparametric Analysis of the Representative Consumer
KU Leuven; Erasmus Research Institute of Management (ERIM)
Institute for Fiscal Studies (IFS)
Bram De Rock
Katholieke Universiteit Leuven - Campus Kortrijk (KULAK) - Subfaculty of Economics and Applied Economics
Tilburg University - CentER; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 6266
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide a revealed preference characterisation of the representative consumer. Our results are simple and complement those of Gorman (1953, 1961), Samuelson (1956) and others. They can also be applied to data very readily and without the need for auxilliary parametric or statistical assumptions. We investigate the application of our characterisation by means of a balanced microdata panel survey. Our findings provide robust evidence against the existence of a representative consumer for our data.
Number of Pages in PDF File: 24
Keywords: revealed preference, aggregation, Gorman polar form, GARP
JEL Classification: D10, D30, D60, E10working papers series
Date posted: January 8, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 1.656 seconds