The Experts below are selected from a list of 80475 Experts worldwide ranked by ideXlab platform
Peter J Klenow - One of the best experts on this subject based on the ideXlab platform.
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using Consumer Theory to test competing business cycle models
Journal of Political Economy, 1998Co-Authors: Mark Bils, Peter J KlenowAbstract:Consumer Theory suggests that expenditures on luxuries and durables should be more cyclical than expenditures on necessities and nondurables. Estimating luxuriouseness and durability for 57 Consumer goods, we confirm this prediction in U.S. data. We exploit this finding to test predictions of cyclical utilization and increasing returns models of business cycles. Both models predict more cyclical productivity for durable luxuries, a prediction borne out in the data. The utilization model predicts procyclical relative prices for durables and luxuries; the increasing returns model does not. Prices are more procyclical for durables and luxuries, discriminating in favor of cyclical utilization.
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using Consumer Theory to test competing business cycles models
Journal of Political Economy, 1998Co-Authors: Mark Bils, Peter J KlenowAbstract:Consumer Theory suggests that expenditures on luxuries and durables should be more cyclical than expenditures on necessities and nondurables. Estimating luxuriouseness and durability for 57 Consumer goods, we confirm this prediction in U.S. data. We exploit this finding to test predictions of cyclical utilization and increasing returns models of business cycles. Both models predict more cyclical productivity for durable luxuries, a prediction borne out in the data. The utilization model predicts procyclical relative prices for durables and luxuries; the increasing returns model does not. Prices are more procyclical for durables and luxuries, discriminating in favor of cyclical utilization.
Tarun Sabarwal - One of the best experts on this subject based on the ideXlab platform.
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directional monotone comparative statics
Economic Theory, 2018Co-Authors: Annechristine Barthel, Tarun SabarwalAbstract:Many questions of interest in economics can be stated in terms of monotone comparative statics: If a parameter of a constrained optimization problem increases, when does its solution increase as well. This paper characterizes monotone comparative statics in different directions in finite-dimensional Euclidean space. These new characterizations are ordinal and retain the same flavor as their counterparts in the standard Theory, showing new connections to the standard Theory. The results are highlighted by several applications in Consumer Theory, producer Theory and game Theory. These applications were previously outside the scope of the standard Theory of monotone comparative statics.
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directional monotone comparative statics
Economic Theory, 2018Co-Authors: Annechristine Barthel, Tarun SabarwalAbstract:Many questions of interest in economics can be stated in terms of monotone comparative statics: If a parameter of a constrained optimization problem increases, when does its solution increase as well. This paper characterizes monotone comparative statics in different directions in finite-dimensional Euclidean space. These new characterizations are ordinal and retain the same flavor as their counterparts in the standard Theory, showing new connections to the standard Theory. The results are highlighted by several applications in Consumer Theory, producer Theory and game Theory. These applications were previously outside the scope of the standard Theory of monotone comparative statics.
Moses Shayo - One of the best experts on this subject based on the ideXlab platform.
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how large are non budget constraint effects of prices on demand
American Economic Journal: Applied Economics, 2009Co-Authors: Ori Heffetz, Moses ShayoAbstract:Elementary Consumer Theory assumes prices affect demand only because they affect the budget constraint (BC). Alternative models, and some evidence, suggest prices can affect demand through other, non-BC channels (e.g., by signaling quality). This paper uses a lab and a field experiment to disentangle BC from non-BC effects of prices on demand. In the lab, we find that although prices positively affect stated willingness to pay, non-BC price elasticities are considerably smaller than BC price elasticities, are often statistically insignificant, and do not increase with product uncertainty. We do not detect any non-BC effects in our field experiment.
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how large are non budget constraint effects of prices on demand
American Economic Journal: Applied Economics, 2009Co-Authors: Ori Heffetz, Moses ShayoAbstract:Elementary Consumer Theory assumes that prices affect demand only because they affect the budget constraint (BC). By contrast, several models suggest that prices can affect demand through other channels (e.g. because they signal quality). This alternative conjecture is consistent with evidence from marketing studies. However, neither Theory nor evidence is informative regarding the magnitude of non-BC effects. The key econometric challenge arises from the fact that a change in prices typically also changes the BC. This paper uses a lab and a field experiment to disentangle BC from non-BC effects of prices on demand. In our lab experiment we find that, consistent with marketing evidence, prices positively affect stated willingness to pay. However, when examining actual demand, non-BC price elasticities are considerably smaller than BC price elasticities and are often statistically insignificant. Further, these non-BC elasticities do not increase with product uncertainty. Finally, we do not detect any non-BC effects in our field experiment.
Mark Bils - One of the best experts on this subject based on the ideXlab platform.
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using Consumer Theory to test competing business cycle models
Journal of Political Economy, 1998Co-Authors: Mark Bils, Peter J KlenowAbstract:Consumer Theory suggests that expenditures on luxuries and durables should be more cyclical than expenditures on necessities and nondurables. Estimating luxuriouseness and durability for 57 Consumer goods, we confirm this prediction in U.S. data. We exploit this finding to test predictions of cyclical utilization and increasing returns models of business cycles. Both models predict more cyclical productivity for durable luxuries, a prediction borne out in the data. The utilization model predicts procyclical relative prices for durables and luxuries; the increasing returns model does not. Prices are more procyclical for durables and luxuries, discriminating in favor of cyclical utilization.
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using Consumer Theory to test competing business cycles models
Journal of Political Economy, 1998Co-Authors: Mark Bils, Peter J KlenowAbstract:Consumer Theory suggests that expenditures on luxuries and durables should be more cyclical than expenditures on necessities and nondurables. Estimating luxuriouseness and durability for 57 Consumer goods, we confirm this prediction in U.S. data. We exploit this finding to test predictions of cyclical utilization and increasing returns models of business cycles. Both models predict more cyclical productivity for durable luxuries, a prediction borne out in the data. The utilization model predicts procyclical relative prices for durables and luxuries; the increasing returns model does not. Prices are more procyclical for durables and luxuries, discriminating in favor of cyclical utilization.
Jordan J. Louviere - One of the best experts on this subject based on the ideXlab platform.
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deleting irrational responses from discrete choice experiments a case of investigating or imposing preferences
Health Economics, 2006Co-Authors: Emily Lancsar, Jordan J. LouviereAbstract:Investigation of the 'rationality' of responses to discrete choice experiments (DCEs) has been a theme of research in health economics. Responses have been deleted from DCEs where they have been deemed by researchers to (a) be 'irrational', defined by such studies as failing tests for non-satiation, or (b) represent lexicographic preferences. This paper outlines a number of reasons why deleting responses from DCEs may be inappropriate after first reviewing the Theory underpinning rationality, highlighting that the importance placed on rationality depends on the approach to Consumer Theory to which one ascribes. The aim of this paper is not to suggest that all preferences elicited via DCEs are rational. Instead, it is to suggest a number of reasons why it may not be the case that all preferences labelled as 'irrational' are indeed so. Hence, deleting responses may result in the removal of valid preferences; induce sample selection bias; and reduce the statistical efficiency and power of the estimated choice models. Further, evidence suggests random utility Theory may be able to cope with such preferences. Finally, we discuss a number of implications for the design, implementation and interpretation of DCEs and recommend caution regarding the deletion of preferences from stated preference experiments.