Nonparametric Estimation of a Nonseparable Demand Function under the Slutsky Inequality Restriction
| Autor: | Matthias Parey, Joel L. Horowitz, Richard Blundell |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Estimation
Economics and Econometrics Nonparametric estimator Inequality media_common.quotation_subject 05 social sciences Nonparametric statistics Income distribution Demand curve 0502 economics and business Economics Econometrics Endogeneity 050207 economics Social Sciences (miscellaneous) 050205 econometrics media_common |
| Zdroj: | The Review of Economics and Statistics. 99:291-304 |
| ISSN: | 1530-9142 0034-6535 |
| DOI: | 10.1162/rest_a_00636 |
| Popis: | We present a method for consistent nonparametric estimation of a demand function with nonseparable unobserved taste heterogeneity subject to the shape restriction implied by the Slutsky inequality. We use the method to estimate gasoline demand in the United States. The results reveal differences in behavior between heavy and moderate gasoline users. They also reveal variation in the responsiveness of demand to plausible changes in prices across the income distribution. We extend our estimation method to permit endogeneity of prices. The empirical results illustrate the improvements in finite-sample performance of a nonparametric estimator from imposing shape restrictions based on economic theory. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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