Tuesday 11
Theory, Mathematical Economics and General Equilibrium
François Gardes
› 12:00 - 12:30 (30min)
› 603
A test of rationality axioms with individual prices in a domestic production framework
François Gardes  1, 2@  
1 : Maison des Sciences Economiques; Université Paris 1
Université Paris I - Panthéon-Sorbonne
2 : Paris-Jourdan Sciences Economiques  (PSE)  -  Website
École normale supérieure [ENS] - Paris, École des Ponts ParisTech (ENPC), Ecole des Hautes Etudes en Sciences Sociales (EHESS), CNRS : UMR8545, Institut national de la recherche agronomique (INRA)
48 boulevard Jourdan 75014 Paris -  France

The purpose of this paper is to contribute to the current discussion on the compatibility of consumers' behavior in "real" life with the choice under consistency axioms by testing revealed preferences axioms using prices estimated at the individual level. The estimation of these individual prices is performed on a match of households' expenditures surveys panelized over four years with a Time Use survey, which allows the computation of a proxy for full prices at the individual level that operates in the test of rationality. A large number of preferences are revealed on this dataset compared to the literature, while the violations of rationality seem to be very limited. Finally, a demand system is estimated on the population of rational households and compared to the estimation on non-rational.

 


Online user: 1