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Testing for Intertemporal Nonseparability

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  • Ian Crawford
  • Matthew Polisson

Abstract

This paper presents a nonparametric analysis of intertemporal models of consumer choice that relax consumption independence. We compare the revealed preference conditions for the intertemporally nonseparable models of rational habit formation and rational anticipation. We show that these models are nonparametrically equivalent in the usual empirical setting.

Suggested Citation

  • Ian Crawford & Matthew Polisson, 2013. "Testing for Intertemporal Nonseparability," Discussion Papers in Economics 13/08, Division of Economics, School of Business, University of Leicester, revised Jul 2013.
    • Handle: RePEc:lec:leecon:13/08
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    References listed on IDEAS

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    Cited by:

    1. Cherchye, Laurens & De Rock, Bram & Kerstens, Pieter Jan, 2018. "Production with storable and durable inputs: Nonparametric analysis of intertemporal efficiency," European Journal of Operational Research, Elsevier, vol. 270(2), pages 498-513.
    2. Peter Levell, 2014. "Revealed preference and consumption behaviour at retirement," IFS Working Papers W14/29, Institute for Fiscal Studies.
    3. Sam Cosaert & Tom Potoms, 2024. "Intertemporal Consumption With Anticipating, Remembering, And Experiencing Selves," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(3), pages 1283-1322, August.

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    More about this item

    Keywords

    Anticipation; habits; revealed preference; time separability;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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