Working Paper No. 990

A Simple Method to Account for Measurement Errors in Revealed Preference Tests

Published: November 21, 2013Pages: 18Keywords: Berkson measurement errors; Classical measurement errors; GARP; Revealed preferenceJEL-codes: C43; D12

A Simple Method to Account for Measurement Errors in Revealed Preference Tests Per Hjertstrand

Revealed preference tests are widely used in empirical applications of consumer rationality. These are static tests, and consequently, lack ability to handle measurement errors in the data. This paper extends and generalizes existing procedures that account for measurement errors in revealed preference tests. In particular, it introduces a very efficient method to implement these procedures, which make them operational for large data sets. The paper illustrates the new method for both classical and Berkson measurement errors models.

Per Hjertstrand


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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