Commodity Aggregation and Slutsky Asymmetry

摘要: Consumer expenditure data often violate the revealed preference axioms. The observed inconsistencies must be measured in order to judge extent which optimizing models misrepresent demand behavior. This paper considers “sizes” of violations Ville axiom, a differential axiom that is equivalent Slutsky symmetry. We study effect commodity aggregation on when justified sense it generates well-defined aggregated function. Using natural measure asymmetry and violation, we show can either expand or eliminate inconsistency. obtain an upper bound increase maximal sizes due aggregation. norm larger than original function by factor no greater \( \sqrt {nm/N,} \), where N number goods system, m are aggregated, n = − + 1 system.