2016

Mixed Integer Programming Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure and Money

Särtryck nr 2016:42

Författare: Per Hjertstrand, James L. Swofford och Gerald A. WhitneyÅr: 2016 Publikation: Journal of Money, Credit and Banking Årgång (nr): 48 (7) Sidor: 1547–1561
Artikeln online (behörighet kan krävas)
Preliminär version


Swofford and Whitney (1987, 1988, 1994) investigated the validity of two key assumptions underlying representative agent models of macroeconomics. These assumptions are utility maximization and weak separability. Using mixed integer programming, we check revealed preference conditions for these assumptions. We find that M1, money defined by Friedman and Schwartz (1963), and a broad aggregate are weakly separable. We find that consumption goods and leisure and nondurables and services are weakly separable. We find that M2, M3, and MZM are not weakly separable. Finally, we find three categories of consumption, durables, nondurables and services, do not form an aggregate.


Referens:
Hjertstrand, Per, James L. Swofford och Gerald A. Whitney (2016), "Mixed Integer Programming Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure and Money". Journal of Money, Credit and Banking 48(7), 1547–1561.

Per Hjertstrand

Kontakt

Tel: 08 665 4557
per.hjertstrand@ifn.se

Aktuell forskare

Lars Calmfors

Forskningsområden: Arbetsmarknads- och makroekonomi.

Några av de frågor Lars Calmfors försöker besvara i sin forskning:

  • Orsaker till arbetslöshet?
  • Hur fungerar EMU?
  • Hur kan olika institutionella arrangemang bidra till en lämplig finanspolitik? 

IFN kalendarium

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se