Classifying bounded rationality in limited data sets: a Slutsky matrix approach

• Autores: Víctor H. Aguiar L., Roberto Serrano
• Localización: SERIEs : Journal of the Spanish Economic Association, ISSN 1869-4195, Vol. 9, Nº. 4, 2018, págs. 389-421
• Idioma: inglés
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• Resumen

  • Given any observed finite sequence of prices, wealth, and demand choices, we propose a way to measure and classify the departures from rationality in a systematic fashion, by connecting violations of the underlying Slutsky matrix properties to the length of revealed demand cycles. The approach complements our previous study (Aguiar and Serrano in J Econ Theory 172:163–201, 2017), which is based on the entire demand function. The methodology can be easily applied in experimental demand data sets