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Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients
We prove a new identification theorem showing nonparametric identification of the joint distribution of random coefficients in general nonlinear and additive models. This differs from existing random coefficients models by not imposing a linear index structure for the regressors. We then model unobs...
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| Published in: | The Journal of political economy 2017-08, Vol.125 (4), p.1100-1148 |
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| Main Authors: | , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c431t-800f76fef1733b1cfb5da037f36586e246a1a23c47278f9c2619bc92d00d9c613 |
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| cites | cdi_FETCH-LOGICAL-c431t-800f76fef1733b1cfb5da037f36586e246a1a23c47278f9c2619bc92d00d9c613 |
| container_end_page | 1148 |
| container_issue | 4 |
| container_start_page | 1100 |
| container_title | The Journal of political economy |
| container_volume | 125 |
| creator | Lewbel, Arthur Pendakur, Krishna |
| description | We prove a new identification theorem showing nonparametric identification of the joint distribution of random coefficients in general nonlinear and additive models. This differs from existing random coefficients models by not imposing a linear index structure for the regressors. We then model unobserved preference heterogeneity in consumer demand as utility functions with random Barten scales. These Barten scales appear as random coefficients in nonlinear demand equations. Using Canadian data, we compare estimated energy demand functions with and without random Barten scales. We find that unobserved preference heterogeneity substantially affects the estimated consumer surplus costs of an energy tax. |
| doi_str_mv | 10.1086/692808 |
| format | article |
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We find that unobserved preference heterogeneity substantially affects the estimated consumer surplus costs of an energy tax.</description><subject>Demand</subject><subject>Economic theory</subject><subject>Energy</subject><subject>Excess & surplus lines</subject><subject>Heterogeneity</subject><subject>Nonlinear systems</subject><subject>Political economy</subject><subject>Studies</subject><subject>Taxation</subject><subject>Theorems</subject><subject>Utility functions</subject><issn>0022-3808</issn><issn>1537-534X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2017</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><sourceid>8BJ</sourceid><recordid>eNqNkF9LwzAUxYMoOKd-A6GgiC_V_GmT9lE23YSBog58K2l6MzO2pCadMD-9kcp89b5cOPzuOdyD0CnB1wQX_IaXtMDFHhqQnIk0Z9nbPhpgTGnKon6IjkJY4jgEswF6mVtXB_Cf0CRPHjR4sAqSKXTg3QIsmG6bGJuMYS1tk8yDsYtkEnUvV-YrHj1H2a2TkQOtjTJgu3CMDrRcBTj53UM0v797HU3T2ePkYXQ7S1XGSJcWGGvBNWgiGKuJ0nXeSMyEZjwvONCMSyIpU5mgotClopyUtSppg3FTKk7YEJ33vq13HxsIXbV0G29jZEXKIhOc44xH6rKnlHchxBer1pu19NuK4OqnsKovLIIXPbhR70bJhWs9hPDnucOu_oFVbaMjetajy9A5v8ulPM9xxgT7BtvUgR8</recordid><startdate>20170801</startdate><enddate>20170801</enddate><creator>Lewbel, Arthur</creator><creator>Pendakur, Krishna</creator><general>University of Chicago Press</general><general>University of Chicago, acting through its Press</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7TQ</scope><scope>8BJ</scope><scope>DHY</scope><scope>DON</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20170801</creationdate><title>Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients</title><author>Lewbel, Arthur ; Pendakur, Krishna</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c431t-800f76fef1733b1cfb5da037f36586e246a1a23c47278f9c2619bc92d00d9c613</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2017</creationdate><topic>Demand</topic><topic>Economic theory</topic><topic>Energy</topic><topic>Excess & surplus lines</topic><topic>Heterogeneity</topic><topic>Nonlinear systems</topic><topic>Political economy</topic><topic>Studies</topic><topic>Taxation</topic><topic>Theorems</topic><topic>Utility functions</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Lewbel, Arthur</creatorcontrib><creatorcontrib>Pendakur, Krishna</creatorcontrib><collection>CrossRef</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The Journal of political economy</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Lewbel, Arthur</au><au>Pendakur, Krishna</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients</atitle><jtitle>The Journal of political economy</jtitle><date>2017-08-01</date><risdate>2017</risdate><volume>125</volume><issue>4</issue><spage>1100</spage><epage>1148</epage><pages>1100-1148</pages><issn>0022-3808</issn><eissn>1537-534X</eissn><abstract>We prove a new identification theorem showing nonparametric identification of the joint distribution of random coefficients in general nonlinear and additive models. 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| ispartof | The Journal of political economy, 2017-08, Vol.125 (4), p.1100-1148 |
| issn | 0022-3808 1537-534X |
| language | eng |
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| source | EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); EBSCOhost Econlit with Full Text; PAIS Index; JSTOR Archival Journals; University of Chicago Press Journals |
| subjects | Demand Economic theory Energy Excess & surplus lines Heterogeneity Nonlinear systems Political economy Studies Taxation Theorems Utility functions |
| title | Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients |
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