Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/254254 
Year of Publication: 
2022
Series/Report no.: 
IFS Working Paper No. W22/04
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
This note explains the equivalence between approximate rationalizability and approximate cost-rationalizability within the context of consumer demand. In connection with these results, we interpret Afriat's (1973) critical cost efficiency index (CCEI) as a measure of cost (in)efficiency, in the sense that a consumer is spending more money than is required to achieve her utility targets.
Subjects: 
rationalizability
cost-rationalizability
Afriat's efficiency index
CCEI
JEL: 
D11
D12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
387.09 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.