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on Discrete Choice Models |
| By: | Christophe Kolodziejczyk (Institute of Economics, University of Copenhagen) |
| Abstract: | In the context of the unitary model of household labour supply we test whether the husband’s work is separable from consumption and the wife’s work. We apply a conditional preferences approach to derive a conditional labor supply function for the wife consistent with a unitary model with nonseparable preferences. Our main results are that consumption and wife’s work hours are not separable from the husband’s labour supply. Furthermore we find that the wife’s and husband’s work hours are complements when men tend to work longer hours than a typical full-time contract. |
| Keywords: | conditional preferences; non-separability; income taxation; married women labor supply |
| JEL: | D13 H24 H31 J22 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuieca:2005_02&r=dcm |
| By: | Laura Blow (Institute for Fiscal Studies, London); Martin Browning (Institute of Economics, University of Copenhagen); Ian Crawford (University of Surrey) |
| Abstract: | Characteristics models have been found to be useful in many areas of economics. However, their empirical implementation tends to rely heavily on functional form assumptions. In this paper we develop a revealed preference approach to characteristics models. We derive the necessary and sufficient empirical conditions under which data on the market behaviour of heterogeneous, price-taking consumers are nonparametrically consistent with the consumer characteristics model. Where these conditions hold, we show how information may be recovered on individual consumer's marginal valuations of product attributes. In some cases marginal valuations are point identified and in other cases we can only recover bounds. Where the conditions fail we highlight the role which the introduction of unobserved product attributes can play in rationalising the data. We implement these ideas using consumer panel data on the Danish milk market. |
| Keywords: | product characteristics; revealed preference |
| JEL: | C43 D11 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuieca:2005_04&r=dcm |
| By: | Pablo M Garcia (Centro de Estudios para la Producción - CEP) |
| Abstract: | It is usual to estimate willingness-to-pay in discrete choice models through Logit models –or their expanded versions-. Nevertheless, these models have very restrictive distributional assumptions. This paper is intended to examine the above- mentioned issue and to propose an alternative estimation using non-parametric techniques (through Simple Index Models). Furthermore, this paper introduces an empirical application of willingness-to-pay for improved subway travel times in the City of Buenos Aires. |
| JEL: | C2 L9 |
| Date: | 2005–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpem:0504007&r=dcm |
| By: | Franz Dietrich; Christian List |
| Abstract: | In response to recent work on the aggregation of individual judgements on logically connected propositions into collective judgements, it is often asked whether judgement aggregation is a special case of Arrowian preference aggregation. We suggest the opposite. After introducing judgement aggregation and proving a general impossibility theorem, we construct an explicit embedding of preference aggregation into judgement aggregation and prove Arrow's theorem as a direct corollary of our more general result on judgement aggregation. Although we provide a new proof of Arrow's theorem, our main aim is to clarify the logical relation between judgement and preference aggregation and to illustrate the great generality of the judgement aggregation model. |
| Keywords: | judgement aggregation, formal logic, preference aggregation, Arrow's Theorem, discursive dilemma |
| JEL: | D70 D71 |
| Date: | 2005–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwppe:0504007&r=dcm |