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Chapter 10 Developments in Nonparametric Demand Analysis: Heterogeneity and Nonparametrics

In: Quantifying Consumer Preferences

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  • Stefan Hoderlein

Abstract

This chapter discusses new developments in nonparametric econometric approaches related to empirical modeling of demand decisions. It shows how diverse recent approaches are, and what new modeling options arise in practice. We review work on nonparametric identification using nonseparable functions, semi- and nonparametric estimation approaches involving inverse problems, and nonparametric testing approaches. We focus on classical consumer demand systems with continuous quantities, and do not consider approaches that involve discrete consumption decisions as are common in empirical industrial organization. Our intention is to give a subjective account on the usefulness of these various methods for applications in the field.

Suggested Citation

  • Stefan Hoderlein, 2009. "Chapter 10 Developments in Nonparametric Demand Analysis: Heterogeneity and Nonparametrics," Contributions to Economic Analysis, in: Quantifying Consumer Preferences, pages 281-297, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:ceazzz:s0573-8555(2009)0000288013
    DOI: 10.1108/S0573-8555(2009)0000288013
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