TESTING THE SIGNIFICANCE OF DEVIATIONS FROM RATIONAL BEHAVIOR

We propose procedures for testing statistically the significance of violations of nonparametric tests of optimization axioms when observed behavior is measured with error. The tests are robust against parametric specification of the error distribution, thus are nonparametric in both the statistical and economic senses, and are readily implemented numerically. An illustration with demand data is presented.


Issue Date:
1990
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/13267
Total Pages:
22
Series Statement:
Staff Paper P91-7




 Record created 2017-04-01, last modified 2017-08-22

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