Effects of Structural Constraints and Costs on Choices

21 Pages Posted: 30 Dec 2010

See all articles by Peter J. Simmons

Peter J. Simmons

University of York - Department of Economics and Related Studies

Date Written: November 24, 2010

Abstract

The paper argues that many choice situations involve a more complicated constraint structure than the standard linear budget constraint and consumption set. Some abstract examples are outlined and in each case some theoretical properties are derived, for example, of the comparative statics. One result of interest is to derive the direct utility choice problem, which generates quasihomothetic preferences. Some empirical examples for the generic cases are sketched for rural household choices, choices of costs of travel to work, a UK welfare benefit system.

Suggested Citation

Simmons, Peter J., Effects of Structural Constraints and Costs on Choices (November 24, 2010). LABOUR, Vol. 24, pp. 25-45, 2010, Available at SSRN: https://ssrn.com/abstract=1732447 or http://dx.doi.org/10.1111/j.1467-9914.2010.00503.x

Peter J. Simmons (Contact Author)

University of York - Department of Economics and Related Studies ( email )

Heslington
York, YO1 5DD
United Kingdom

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