scholarly journals Revealed Preference Analysis with Normal Goods: Application to Cost-of-Living Indices

2020 ◽  
Vol 12 (3) ◽  
pp. 165-188
Author(s):  
Laurens Cherchye ◽  
Thomas Demuynck ◽  
Bram De Rock ◽  
Khushboo Surana
Keyword(s):  
Panel Study ◽  
Revealed Preference ◽  
Income Dynamics ◽  
Cost Of Living ◽  
Consumption Data ◽  
Normal Goods ◽  
The 2008 Financial Crisis ◽  
The Empirical Analysis ◽  
Revealed Preference Analysis

We present a revealed preference methodology for nonparametric demand analysis under the assumption of normal goods. Our methodology is flexible in that it allows for imposing normality on any subset of goods. We show the usefulness of our methodology for empirical welfare analysis through cost-of-living indices. An illustration to US consumption data drawn from the Panel Study of Income Dynamics (PSID) demonstrates that mild normality assumptions can substantially strengthen the empirical analysis. It obtains considerably tighter bounds on cost-of-living indices and a significantly more informative classification of better-off and worse-off individuals after the 2008 financial crisis. (JEL D11, D12, E31, G01)

Moonlighting Husbands or Working Wives

1982 ◽  
Vol 3 (2) ◽  
pp. 181-198 ◽  
Author(s):  
NEIL O. ALPER ◽  
MARK J. MORLOCK
Keyword(s):  
Family Income ◽  
Panel Study ◽  
Policy Implications ◽  
Income Dynamics ◽  
Factors Affecting ◽  
Binary Logit ◽  
Market Opportunities ◽  
The University ◽  
First Job ◽  
The Empirical Analysis

In households where the husband is the primary income earner, family income may be augmented either by the husband taking a second job (moonlighting) or by the wife obtaining a first job. In this article, binary logit estimating techniques are employed to investigate empirically the types of factors affecting this decision. The data used in the empirical analysis are Wave X (1977) of the University of Michigan's Panel Study of Income Dynamics. The authors find that the relative labor market opportunities of the husband and the wife, the value of the alternative uses of the wife's time, and the attitudes of both the husband and the wife toward the wife's market work all play a significant and predictable role as determinants of moonlighting. The policy implications of these findings are discussed.

Habit Formation in Consumer Preferences: Evidence from Panel Data

2000 ◽  
Vol 90 (3) ◽  
pp. 391-406 ◽  
Author(s):  
Karen E Dynan
Keyword(s):  
Habit Formation ◽  
Consumer Preferences ◽  
Panel Study ◽  
Consumer Expenditure ◽  
Income Dynamics ◽  
Household Data ◽  
Consumer Expenditure Survey ◽  
Consumption Data ◽  
Food Consumption Data ◽  
Annual Frequency

This paper tests for the presence of habit formation using household data. A simple model of habit formation implies a condition relating the strength of habits to the evolution of consumption over time. When the condition is estimated with food consumption data from the Panel Study on Income Dynamics (PSID), the results yield no evidence of habit formation at the annual frequency. This finding is robust to a number of changes in the specification. It also holds for several proxies for nondurables and services consumption created by combining PSID variables with weights estimated from Consumer Expenditure Survey data. (JEL D12, D91, E21)

scholarly journals Recent Applications of Nonparametric Programming Methods

1992 ◽  
Vol 21 (2) ◽  
pp. 113-120 ◽  
Author(s):  
Hyunok Lee
Keyword(s):  
Convex Sets ◽  
Revealed Preference ◽  
Production Data ◽  
Nonparametric Analysis ◽  
Preference Analysis ◽  
Supporting Hyperplanes ◽  
Linear Programming Methods ◽  
Consumption Data ◽  
Nonparametric Techniques ◽  
Revealed Preference Analysis

Nonparametric techniques have recently come into vogue in agricultural economics: Applications abound in both consumer and producer models of the agricultural economy. Moreover, several distinct approaches to nonparametric analysis exist. There are nonparametric statistical techniques, semiparametric estimation techniques, nonparametric revealed-preference analysis of consumption data, and nonparametric analysis of production data. Both revealed-preference analysis and nonparametric analysis of production data rely on the basic fact, which provides the foundation for much of modern duality theory, that convex sets can be completely characterized by their supporting hyperplanes. This observation allows one to apply simple mathematical programming (in particular, linear programming) methods to analyze production and consumption data. My task today is to provide an overview of nonparametric programming approaches to production data. Thus, I will not address any of the other topics cited above. However, I would be remiss if I did not mention the close connection between these subject areas and what I intend to survey today. Moreover, one should also recognize that very closely related to the literature on nonparametric programming analysis of production data are the fields of estimation of efficiency frontier via statistical methods. (A useful survey here is Lovell and Schmidt).

scholarly journals A revealed preference analysis to develop composite scores approximating lung allocation policy in the U.S

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Darren E. Stewart ◽  
Dallas W. Wood ◽  
James B. Alcorn ◽  
Erika D. Lease ◽  
Michael Hayes ◽  
...  
Keyword(s):  
Revealed Preference ◽  
Blood Type ◽  
Relative Importance ◽  
Current Policy ◽  
Allocation Policy ◽  
Preference Analysis ◽  
Transplant Center ◽  
Current Classification ◽  
Composite Scores ◽  
Revealed Preference Analysis

Abstract Background The patient ranking process for donor lung allocation in the United States is carried out by a classification-based, computerized algorithm, known as the match system. Experts have suggested that a continuous, points-based allocation framework would better serve waiting list candidates by removing hard boundaries and increasing transparency into the relative importance of factors used to prioritize candidates. We applied discrete choice modeling to match run data to determine the feasibility of approximating current lung allocation policy by one or more composite scores. Our study aimed to demystify the points-based approach to organ allocation policy; quantify the relative importance of factors used in current policy; and provide a viable policy option that adapts the current, classification-based system to the continuous allocation framework. Methods Rank ordered logistic regression models were estimated using 6466 match runs for 5913 adult donors and 534 match runs for 488 pediatric donors from 2018. Four primary attributes are used to rank candidates and were included in the models: (1) medical priority, (2) candidate age, (3) candidate’s transplant center proximity to the donor hospital, and (4) blood type compatibility with the donor. Results Two composite scores were developed, one for adult and one for pediatric donor allocation. Candidate rankings based on the composite scores were highly correlated with current policy rankings (Kendall’s Tau ~ 0.80, Spearman correlation > 90%), indicating both scores strongly reflect current policy. In both models, candidates are ranked higher if they have higher medical priority, are registered at a transplant center closer to the donor hospital, or have an identical blood type to the donor. Proximity was the most important attribute. Under a points-based scoring system, candidates in further away zones are sometimes ranked higher than more proximal candidates compared to current policy. Conclusions Revealed preference analysis of lung allocation match runs produced composite scores that capture the essence of current policy while removing rigid boundaries of the current classification-based system. A carefully crafted, continuous version of lung allocation policy has the potential to make better use of the limited supply of donor lungs in a manner consistent with the priorities of the transplant community.

Marriage as a Mechanism of Internalizing Externalities: A Case of Smoking

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Jane J. You
Keyword(s):  
Positive Impact ◽  
Panel Study ◽  
Legal Institution ◽  
Income Dynamics ◽  
Negative Externalities ◽  
Long Run ◽  
Married Individuals

Abstract With the view of marriage as a legal institution to internalize externalities, I examine the effect of marriage on smoking. From analyzing the data of Panel Study of Income Dynamics, I found that unmarried individuals are more likely to smoke by 4.9% point than married individuals with stronger impact on females. The long-run impact of marriage also shows that the unmarried individuals smoke more than married individuals but some of its positive impact diminishes within two years. These results on the whole imply that marriage internalizes the negative externalities of smoking and thus leads smokers to reduce smoking.

Using intentions to predict fertility

2021 ◽  
pp. 1-26
Author(s):  
Johannes Norling
Keyword(s):  
Rational Expectations ◽  
Panel Study ◽  
Income Dynamics ◽  
Number Of Children ◽  
Childless Women

Abstract On average, childless women observed by the Panel Study of Income Dynamics report that they intend to have more children than they actually have. A collection of intentions that record only whether respondents intend to have another child can more accurately predict the number of children they have. Errors in the formation of intentions are not required to explain this finding. Rather, if intentions record a survey respondent's most likely predicted number of children, then the average of these intentions does not necessarily equal average actual fertility, even if intentions are formed using rational expectations.

scholarly journals The Allocation of Money in Couples: The End of Inequality? / Allokation von Geld in Paarbeziehungen: Das Ende der Ungleichheit?

2006 ◽  
Vol 35 (3) ◽  
Author(s):  
Wolfgang Ludwig-Mayerhofer ◽  
Hermann Gartner ◽  
Jutta Allmendinger
Keyword(s):  
Empirical Analysis ◽  
Low Income ◽  
Panel Study ◽  
Male Partner ◽  
Money Management ◽  
Men And Women ◽  
Low Incomes ◽  
Financial Arrangements ◽  
Fourth Wave ◽  
The Empirical Analysis

SummaryResearch conducted in the 1980s and early 1990s showed considerable inequalities within male-female couples as concerns financial arrangements and access to personal spending money. This paper provides an analysis of the allocation of money in German couples that goes beyond previous research in two respects. First, data are used that permit direct, albeit only rough, assessments of the amount of personal spending money available to each of the partners. Second, it is therefore possible to investigate in some detail the factors that may influence the availability of personal spending money and thus also the possible differences between the woman and the man concerning the amount of money available to each of them.The empirical analysis is based on the German Low Income Panel (NIedrig-Einkommens-Panel, NIEP), a panel study representative of households with an income lower than about 1.5 times the German social assistance rate in 1999, the year of the first wave. We use the fourth wave of the NIEP, in which questions about couples’ money management were added to the questionnaire. The data refer to those 718 households that consisted of an adult couple, with or without children.While not all couples allocate the same amount of money to each partner, there is no difference in the proportion of men and women who have more money at their disposal than their partners. A number of hypotheses are tested concerning the amount of money allocated to individual partners, and the effects are basically the same for men and women. Investigation of the effects on the within-couple differences in personal spending money shows that the balance shifts in favor of the male partner if his education is superior to that of the female partner. This holds specifically for couples with very low incomes.

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