Department of Economics and Business Economics

Bounding quantile demand functions using revealed preference inequalities

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This paper develops a new approach to the estimation of consumer demand models with unobserved heterogeneity subject to revealed preference inequality restrictions. Particular attention is given to nonseparable heterogeneity. The inequality restrictions are used to identify bounds on counterfactual demand. A nonparametric estimator for these bounds is developed and asymptotic properties are derived. An empirical application using data from the UK Family Expenditure Survey illustrates the usefulness of the methods.

Original languageEnglish
JournalJournal of Econometrics
Pages (from-to)112-127
Number of pages16
Publication statusPublished - 1 Apr 2014

    Research areas

  • Bounds, Consumer behavior, Quantile regression, Revealed preference

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