Discussion Papers no. 431
Behavioral characterization and empirical evidence
Utility of income as a random function
The paper proposes a particular approach to model the utility of income. We develop a theoretical framework that restricts the class of admissible functional forms and distributions of the random components of the model. The theoretical approach is based on theories of probabilistic choice and ideas that are used in modern psychophysical research. From our theoretical framework, we obtain the empirical model and the corresponding likelihood function. The empirical analysis is based on a "Stated Preference" survey. The model fits the data quite well. Finally, we discuss the concept of cardinality and the implications for consumer demand relations.
Om publikasjonen
- Tittel
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Utility of income as a random function. Behavioral characterization and empirical evidence
- Ansvarlige
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John K. Dagsvik, Zhiyang Jia, Steinar Strøm
- Serie og -nummer
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Discussion Papers no. 431
- Utgiver
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Statistics Norway
- Emne
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Discussion Papers
- Antall sider
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54
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
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