Replication data for: How Demanding Is the Revealed Preference Approach to Demand?
- Beatty, Timothy K. M.
- Crawford, Ian A.
AbstractA well-known problem with revealed preference methods is that when data are found to satisfy their restrictions it is hard to know whether this should be viewed as a triumph for economic theory, or a warning that these conditions are so undemanding that almost anything goes. This paper allows researchers to make this distinction. Our approach uses an axiomatic characterization of a measure of predictive success due to Selten (1991). We illustrate the idea using a panel dataset. The results show that this approach can lead us to radically reassess our view of the empirical performance of economic theory. (JEL D11, D12)
Is supplement to
DOI: 10.1257/aer.101.6.2782 (Text)
Beatty, Timothy K. M, and Ian A Crawford. “How Demanding Is the Revealed Preference Approach to Demand?” American Economic Review 101, no. 6 (October 2011): 2782–95. https://doi.org/10.1257/aer.101.6.2782.
- ID: 10.1257/aer.101.6.2782 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-11