Debopam Bhattacharya, University of Cambridge

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october, 2019

201901oct2:40 pm4:00 pmDebopam Bhattacharya, University of Cambridge"Economic Restrictions in Discrete Choice Models"Series:Oskar Morgenstern Memorial Seminar

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Event Details

Abstract: In this talk, I will cover some recent results on the connection between utility maximization and conditional choice probabilities in discrete choice settings with general unobserved heterogeneity. Specifically, I will discuss Slutsky negativity conditions for binary choice, which are necessary and sufficient for rationalizability. Unlike McFadden-Richter’s stochastic revealed preference, these conditions (a) are global, i.e. their forms do not depend on which and how many budget-sets are observed, (b) are closed-form, hence easy to impose on parametric/semi/non-parametric models in practical applications, and (c) provide computationally simple, theory-consistent sharp bounds on demand and welfare predictions on counterfactual budget-sets. Time permitting, I will also discuss some recent results on Slutsky symmetry in multinomial choice models.

Time

(Tuesday) 2:40 pm - 4:00 pm

Location

217 Julis Romo Rabinowitz

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