Goods versus characteristics: Dimension reduction and revealed preference

Arbeitspapier

This paper compares the goods and characteristics models of the consumer within a non-parametric revealed preference framework. Of primary interest is to make a comparison on the basis of predictive success that takes into account dimension reduction. This allows us to nonparametrically identify the model which best fits the data. We implement these procedures on household panel data from the UK milk market. The primary result is that the better fit of the characteristics model is entirely attributable to dimension reduction.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Working Papers ; No. W12/02

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Theory ; Consumer Economics: Empirical Analysis
• Subject: Characteristics ; demand ; dimension reduction ; nested models ; revealed preference

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Polisson, Matthew
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2012

Further information

• DOI: doi:10.1920/wp.ifs.2012.1202
• Handle: http://hdl.handle.net/10419/91556
• Last update: 10.03.2025, 11:44 AM CET