Testing Axioms of Revealed Preference in Stata
20 Pages Posted: 1 Aug 2020
Date Written: June 17, 2020
This paper introduces the Stata commands checkax, aei, and powerps as a bundle within the package rpaxioms. The first command allows the user to test whether consumer demand data satisfy a number of revealed preference axioms at a given efficiency level, the second command calculates measures of goodness-of-fit when the data violate these axioms, and the third command calculates power against uniformly random behavior as well as predictive success for each axiom
at any given efficiency level. The commands are illustrated using experimental individual-level data and aggregated household-level consumption data.
Keywords: Rpaxioms, Checkax, Aei, Powerps, Afriat Effciency Index, GARP, Revealed Preference, Power, Predictive Success
JEL Classification: C87, D12
Suggested Citation: Suggested Citation