Specification tests for mixed demand systems with an emphasis on combining contingent valuation and revealed data

Maria A. Cunha-e-Sá, Maria M. Ducla-Soares

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

In a world characterized by r unrationed goods (i.e., market goods) and (n - r) rationed goods, such as most environmental goods, necessary and sufficient conditions for the existence of an underlying rational preference structure are derived based on a system of mixed demand functions with complete information. With incomplete information, the case of a partial demand system is addressed, and a test for separability is proposed. The implications for testing rationality in a world characterized by combined (RP and SP) individual data are examined for data consistency. Testable conditions are derived.

Original languageEnglish
Pages (from-to)215-233
Number of pages19
JournalJournal of Environmental Economics and Management
Volume38
Issue number2
DOIs
Publication statusPublished - Sept 1999

Keywords

  • Combined (RP and SP) individual data (data consistency)
  • Rationality
  • System of mixed demand functions

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