Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/91540
Authors: 
Blundell, Richard
Browning, Martin
Cherchye, Laurens
Crawford, Ian
De Rock, Bram
Vermeulen, Frederic
Year of Publication: 
2012
Series/Report no.: 
IFS Working Papers W12/14
Abstract: 
Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. These 'i-bounds' generalize earlier results of Blundell, Browning and Crawford (2008). We show that their e-bounds are sharp under the Weak Axiom of Revealed Preference (WARP). They do not require transitivity. The new i-bounds are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures. The new bounds on welfare measures are shown to be operationalized through algorithms that are easy to implement.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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