Hicksian complementarity and perturbed utility models

Autor: John Rehbeck, Roy Allen
Rok vydání: 2019
Předmět:
Zdroj: Economic Theory Bulletin. 8:245-261
ISSN: 2196-1093
2196-1085
DOI: 10.1007/s40505-019-00180-6
Popis: This paper studies aggregate complementarity without price or income variation. We show that for a class of utility functions, variation in non-price observables allows one to recover a measure of complementarity similar to Hicksian complementarity. In addition, the entire Slutsky matrix can be recovered up to scale without price variation. We then examine aggregate complementarity in latent utility models used in discrete choice, bundles, and matching. We show that classical linear instrumental variables can recover Hicksian complementarity for the special case of quadratic utility.
Databáze: OpenAIRE
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