Working Paper No. 1187

Homothetic Preferences Revealed

Published: November 9, 2017Pages: 13Keywords: Graphical Analysis; Homotheticity; Money Metric Utility; Recoverability; Revealed PreferenceJEL-codes: C14; C91; D11; D12

Homothetic Preferences Revealed Jan Heufer and Per Hjertstrand

We propose a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects' preferences and to choose appropriate functional forms for parametric analysis. It can also be used to
extend applications of the money metric function, such as parametric recoverability as introduced by Halevy et al. (2017). It can also improve nonparametric comparison of preferences as suggested by Heufer (2014).

Per Hjertstrand


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Interdisciplinary European Studies

Trust in the European Union in Challenging Times


This is the first book in the Interdisciplinary European Studies collection. This volume provides an interdisciplinary perspective on trust in the EU from the vantage point of political science, law and economics. Lars Oxelheim, Lund University and affiliated to IFN, is one of the authors.


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