Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202616 
Year of Publication: 
2017
Series/Report no.: 
Memorandum No. 08/2017
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
The dominant practice in economics is to choose the mathematical specification of model relations on the basis of convenience, without much theoretical support. This paper discusses how quantitative model specifications can, in some cases, be given a more formal scientific underpinning in the sense of being based on a priori theory. I use an example from discrete choice theory to illustrate that it is sometimes possible to obtain a complete characterization of the choice model derived from a set of plausible axioms. Furthermore, I discuss how axioms can be tested non-parametrically, given that suitable Stated Preference data are available.
Subjects: 
Functional form
Theory of measurement
Invariance principles
Independence from Irrelevant Alternatives
Testing of inequality hypotheses
JEL: 
C40
C51
D12
Document Type: 
Working Paper

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