Real income growth and revealed preference inconsistency

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Show simple item record Jerison, David Jerison, Michael 2006-11-09T11:06:21Z 2006-11-09T11:06:21Z 2001-05
dc.identifier.issn 2340-5031
dc.description.abstract If a smooth demand function violates the strong axiom of revealed preference, the income and prices can follow a cycle and returm to their starting values even though real income is always rising. We show how real income growth along the "worst" revealed preference cycle depends on the range of price variation and on violations of the Slutsky conditions. We relate this result to proposed reforms of the consumer price index and use it to justify a new index of local demand inconsistency. We also use the Slutsky matrix to determine an upper bound on the number of observations required to detect revealed preference inconsistency.
dc.format.extent 248511 bytes
dc.format.mimetype application/pdf
dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working Paper. Economics
dc.relation.ispartofseries 2001-02
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.title Real income growth and revealed preference inconsistency
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we012902
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