Working Paper No. 1342

Testing Axioms of Revealed Preference in Stata

Published: June 15, 2020Pages: 19Keywords: Rpaxioms; Checkax; Aei; Powerps; Afriat effciency index; GARP; Revealed preference; Power; Predictive successJEL-codes: C87; D12

Testing Axioms of Revealed Preference in Stata Marcos Demetry, Per Hjertstrand and Matthew Polisson


This paper introduces the Stata commands checkax, aei, and powers as a bundle within the package rpaxioms. The first command allows the user to test whether consumer demand data satisfy a number of revealed preference axioms at a given efficiency level, the second command calculates measures of goodness-of-fit when the data violate these axioms, and the third command calculates power against uniformly random behavior as well as predictive success for each axiom at any given efficiency level. The commands are illustrated using experimental individual-level data and aggregated household-level consumption data.


Reference:

Demetry, Marcos, Per Hjertstrand and Matthew Polisson (2020), "Testing Axioms of Revealed Preference in Stata". IFN Working Paper No. 1342. Stockholm: Research Institute of Industrial Economics (IFN).

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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