Labor Seminars Amsterdam

Speaker(s)
Laurens Cherchye (Catholic University of Leuven)
Date
2009-09-15
Location
Amsterdam

Abstract: We present a nonparametric ‘revealed preference’methodology for empiri-
cally analyzing collective consumption behavior. First, we introduce an integer
programming (IP) methodology for testing data consistency with collective con-
sumption models that account for publicly as well as privately consumed goods.
This IP methodology can include information on ‘assignable quantities’for pri-
vate goods. Next, we show that the IP methodology allows for recovering the
personalized (Lindahl) prices for the public goods and the personalized quan-
tities for the private goods. In turn, this implies recovery of the sharing rule