| 1. |
- Bougt, Daniel, 1990-
(author)
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A Sequence of Essays on Sequences of Auctions
- 2022
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Doctoral thesis (other academic/artistic)abstract
- Essay I (with Gagan Ghosh and Heng Liu). The existence of declining prices in sequential auctions is a well-documented empirical pattern. Three explanations that can explain the puzzle are bidders being risk averse, loss averse, or ambiguity averse. We use a data set on bids and prices from sequential auctions of train tickets to confirm the existence of declining prices. We further document bidder behavior that is inconsistent with bidders being risk averse or bidders being loss averse.
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| 2. |
- Demetry, Marcos, et al.
(author)
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Consistent subsets : Computing the Houtman-Maks index in Stata
- 2023
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In: The Stata Journal. - : Sage Publications. - 1536-867X .- 1536-8734. ; 23:2, s. 578-588
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Journal article (peer-reviewed)abstract
- The Houtman-Maks index is a measure of the size of a violation of utility-maximizing (that is, rational) behavior. In this article, we introduce the command hmindex, which calculates the Houtman-Maks index for a dataset of prices and observed choices of a consumer. The command is illustrated with an empirical application.
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| 3. |
- Demetry, Marcos, et al.
(author)
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Testing axioms of revealed preference in Stata
- 2022
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In: The Stata Journal. - : Sage Publications. - 1536-867X .- 1536-8734. ; 22:2, s. 319-343
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Journal article (peer-reviewed)abstract
- The revealed preference approach in economics is central to the empirical analysis of consumer behavior. In this article, we introduce the commands checkax, aei, and powerps as a bundle within the package rpaxioms. The first command allows a user to test whether consumer expenditure data satisfy several revealed preference axioms; the second command calculates measures of goodness of fit when the data violate these axioms; and the third command calculates power against uniformly random behavior as well as predictive success for each axiom. We illustrate the commands using individual-level experimental data and household-level aggregate consumption data.
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| 4. |
- Enflo, Kerstin, et al.
(author)
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Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach
- 2009
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In: Regional Studies. - : Informa UK Limited. - 1360-0591 .- 0034-3404. ; 42:10, s. 643-659
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Journal article (peer-reviewed)abstract
- Enflo K. and Hjertstrand P. Relative sources of European regional productivity convergence: a bootstrap frontier approach, Regional Studies. This paper addresses the issue of Western European regional productivity growth and convergence by means of data envelopment analysis (DEA), decomposing labour productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labour productivity distribution. Using bootstrapping methods, the paper also accounts for the inherent bias and the stochastic elements in the efficiency estimation. It is found that the relative ranking of the efficiency scores remains stable after the bias correction, even after controlling for spatially correlated measurement errors, and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.
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| 5. |
- Enflo, Kerstin, et al.
(author)
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Relative sources of European regional productivity convergence: A bootstrap frontier approach
- 2006
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Other publication (other academic/artistic)abstract
- We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.
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| 6. |
- Hjertstrand, Per
(author)
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A Monte Carlo Study of the Necessary and Sufficienct Conditions for Weak Separability
- 2009
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In: Advances in Econometrics. - 0731-9053. ; 24, s. 151-182
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Journal article (peer-reviewed)abstract
- Weak separability is an important concept in many fields of economic theory. This chapter uses Monte Carlo experiments to investigate the performance of newly developed nonparametric revealed preference tests for weak separability. A main finding is that the bias of the sequentially implemented test for weak separability proposed by Fleissig and Whitney (2003) is low. The theoretically unbiased Swofford and Whitney test (1994) is found to perform better than all sequentially implemented test procedures but is found to suffer from an empirical bias, most likely because of the complexity in executing the test procedure. As a further source of information, we also perform sensitivity analyses on the nonparametric revealed preference tests. It is found that the Fleissig and Whitney test seems to be sensitive to measurement errors in the data.
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| 7. |
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| 8. |
- Hjertstrand, Per, et al.
(author)
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Revealed preference tests for consistency with weakly separable indirect utility
- 2012
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In: Theory and Decision. - : Springer Science and Business Media LLC. - 0040-5833 .- 1573-7187. ; 72:2, s. 245-256
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Journal article (peer-reviewed)abstract
- Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for consistency with revealed preference conditions for minimization and weak separability of the indirect utility function.
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| 9. |
- Hjertstrand, Per
(author)
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Testing for Rationality, Separability and Efficiency
- 2008
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Doctoral thesis (other academic/artistic)abstract
- This thesis aims to propose, evaluate and apply test procedures for rationality, weak separability and efficiency. In particular, it focuses on nonparametric revealed preference procedures. This approach has the advantage of not having to stipulate any functional form for the utility function, unlike the parametric approach which relies on finding a suitable functional form for the utility function. Many nonparametric approaches to testing rationality and weak separability are based on what is referred to in the literature as Afriat’s theorem. The significance of this theorem is that if the observed data satisfy some testable conditions, then the data may be rationalized by a well-behaved utility function that possesses such properties as being non-satiated, continuous, monotonic and concave. Chapter 2 provides a generalization of Afriat's theorem. It is shown that the concavity condition in the theorem may be relaxed to the weaker assumption of semistrict quasi-concavity. In particular, revealed preference conditions are used to check whether a finite data set can be generated by a non-satiated, continuous, monotone and semistrict quasi-concave utility function. In addition, it is shown that a data set can be checked for consistency with economic theory by solving a simple linear programming problem. Chapter 3 investigates the properties of nonparametric revealed preference tests for weak separability by means of Monte Carlo experiments. A block of goods is said to be weakly separable from all other goods when the marginal rate of substitution between any pair of goods in the separable block does not depend on the quantities consumed of any good that is not in the block. A main finding of this thesis is that the bias of the sequential test proposed by Fleissig and Whitney (2003) is low, but that the performance of the test deteriorates substantially when measurement errors are added to the data. The theoretically unbiased test by Swofford and Whitney (1994) is found to suffer from an empirical bias, most probably because the test is heavily dependent on efficient nonlinear optimization routines. Chapter 4, using a data set that comprises yearly observations from 1963-2002 examines separability structures and the demand for food in the Swedish food market. A data-orientated search method based on the multistep test procedure proposed by Jones, Elger, Edgerton and Dutkowsky (2005) is applied to find an appropriate structuring of goods in the demand analysis. Most agricultural studies assume that animalia products, beverage products and vegetabilia products constitute separable groupings. It is shown that this is a misleading assumption when analysing Swedish food data. Chapter 5, co-authored with Kerstin Enflo, addresses the issue of Western European regional productivity growth and convergence by means of data envelopment analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. A main finding is that the relative ranking of efficiency scores obtained using DEA is stable with regard to bias-corrections. The decomposition shows that, on average, capital accumulation and technological change have played roughly equally large roles, whereas efficiency changes have contributed negatively.
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