The testable implications of competitive equilibrium in economies with externalities

Carvajal, Andrés

doi:10.1007/s00199-009-0474-9

Cited by 12 publications

(4 citation statements)

References 30 publications

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“…While the more general speci…cation could, in principle, be the starting point for our analysis, it is known that such general preferences impose only trivial restrictions for revealed-preference tests in models with externalities (Carvajal 2010;Deb 2009). Intuitively, this occurs because changes in the level of externalities create a large degree of ‡exibility in utility functions to rationalize revealed preferences.…”

Section: The Utility Functionmentioning

confidence: 99%

“…To address these challenges, the …rst contribution of this paper is a general, revealedpreference methodology for testing a variety of preference structures that may underlie charitable giving. The approach builds on recent innovations in revealed-preference theory that allow for the incorporation of externalities (Carvajal 2010;Deb 2009) and characteristics (Blow, Browning, and Crawford 2008) into a standard model of consumption. Empirically, the tests are simple linear programs that are transparent, computationally e¢ cient, and straightforward to implement.…”

Section: Introductionmentioning

confidence: 99%

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Testing motives for charitable giving: A revealed-preference methodology with experimental evidence

Deb¹,

Gazzale²,

Kotchen³

2014

Journal of Public Economics

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Section: The Utility Functionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Testing motives for charitable giving: A revealed-preference methodology with experimental evidence

Deb¹,

Gazzale²,

Kotchen³

2014

Journal of Public Economics

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“…Brown and Matzkin (1996) study testable restrictions in an exchange economy. This analysis is extended in Brown and Shannon (2000) who study the testable restriction of competitive equilibria, and Carvajal (2010) who extends the analysis to competitive economies with externalities. Cherchye, De Rock, and Vermeulen (2007) and Cherchye, De Rock, and Vermeulen (2010) characterize the behavioral consequences of the collective household model presented in Browning and Chiappori (1998).…”

Section: Introductionmentioning

confidence: 99%

Revealed Time-Preference

Dziewulski

2014

SSRN Journal

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Consider an experiment in which subjects are asked to choose between pairs consisting of a monetary payment and a time-delay at which the payment is delivered. Given a finite set of observations, under what conditions the choices of an individual agent can be rationalised by a discounted utility function? We develop an axiomatic characterisation of time-preference with various forms of discounting, including weakly present-biased, quasi-hyperbolic, and exponential, and determine the testable restrictions for each specification. Moreover, we discuss identification issues which may arise in this class of experiments.

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“…RP analysis can also be performed on equilibrium models where there are multiple agents interacting in an economy or game. Brown and Matzkin (1996) Carvajal 2010). …”

mentioning

confidence: 99%

Symposium on revealed preference analysis

Galichon

Quah

2013

Econ Theory

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Almost invariably, economic models postulate that agents behave according to some type of maximizing behavior. This is true even of models in behavioral economics, though agents in those settings may be unsophisticated in some way or have preferences that depart from classical assumptions. Revealed preference (RP) analysis investigates the observable implications of economic models and the extent to which the objects of a model, for example, agents' preferences, can be inferred from data. While RP analysis in this broad sense applies, of course, to a very large part of empirical investigation in economics, that literature which is typically understood by its practitioners as revealed preference analysis has more specific features: In general, the aim of the analysis is not merely to identify and test some empirical implications of a model, but to identify all the observable implications of a model. These implications take the form of restrictions on the data that could, at least in principle, be checked. Since the models being considered are usually sufficiently general that its objects are restricted by qualitative, rather than functional-form or parametric conditions, the same is true of the restrictions on the data.

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The testable implications of competitive equilibrium in economies with externalities

Abstract: Nash–Walras equilibrium, Externalities, Public goods, Testable restrictions, Empirical implications, Revealed preferences, D12, D50, D62,

Cited by 12 publications

References 30 publications

Testing motives for charitable giving: A revealed-preference methodology with experimental evidence

Testing motives for charitable giving: A revealed-preference methodology with experimental evidence

Revealed Time-Preference

Symposium on revealed preference analysis

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