Title: Normality of demand in a two-goods setting
Authors: Cherchye, Laurens
Demuynck, Thomas
De Rock, Bram
Issue Date: Sep-2016
Publisher: KU Leuven, OE Economie
Series Title: Discussion paper series, DPS16.17 pages:1-22
Abstract: We study the testable implications of normal demand in a two-goods setting. For a finite dataset on prices and quantities, we present the revealed preference conditions for normality of one or both goods. Our characterization provides an intuitive extension of the well-known Weak Axiom of Revealed Preference, and is easy to use in practice. We illustrate the empirical relevance of our theoretical results through an application to the experimental dataset presented in Andreoni and Miller (2002).
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Faculty of Economics and Business, Leuven - miscellaneous
Faculty of Business and Economics, Campus Kulak Kortrijk – miscellaneous
Research Center of Public Economics, Leuven

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