Aggregation without the Aggravation? Nonparametric Analysis of the Representative Consumer

L.J.H. Cherchye, I. Crawford, B. de Rock, F.M.P. Vermeulen

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Abstract

Abstract: 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.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages23
Volume2011-143
Publication statusPublished - 2011

Publication series

NameCentER Discussion Paper
Volume2011-143

Keywords

  • revealed preference
  • aggregation
  • Gorman Polar Form
  • GARP

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    Cherchye, L. J. H., Crawford, I., de Rock, B., & Vermeulen, F. M. P. (2011). Aggregation without the Aggravation? Nonparametric Analysis of the Representative Consumer. (CentER Discussion Paper; Vol. 2011-143). Econometrics.