Qu-Be
Visitors
Selma Telalagic July 14-18, 2014 Abi Adams July 14-18, 2014 Marc-Arthur Diaye February 4-8, 2013 Ian Crawford September 18-20, 2012 Rahul Deb July 16-21, 2012 Abigail Adams April 16-27, 2012 Stefan Hoderlein February 21-22, 2012

What is GARP GARP (Group for the Advancement of Revealed Preferences) is a young and dynamic research group whose main topic involves the use, development and application of the revealed preference methodology.

The Mission The mission of the GARP is threefold. Methodologically, we aim to extend the existing Revealed Preference toolbox for model validation, power assessment and measurement error. Theoretically, we aim to apply the revealed preference methodology to new models of individual and group behavior. Empirically, we aim to bring new and existing Revealed Preference models to the data with a great emphasis on computational aspects.

The Objectives Our main objective is to turn the Revealed Preferences into a widely acknowledged and well known methodology for economic research.

GARP News
New working paper: Normality of Demand in a Two-Goods Setting Date: 06 Sep, 2016
Authors: Laurens Cherchye, Thomas Demuynck, Bram De Rock
Subject: We study the testable implications of normal demand in a two-goods setting. For a finite dataset on prices and quantities, we present the revealed preference conditions for normality of one or both goods.
Appointment Date: 25 May, 2016
Next academic year, Thomas Demuynck wil join Ecares at the Université Libre de Bruxelles.
New Working Paper: Where did it go wrong? Marriage and divorce in Malawi Date: 03 May, 2016
Authors:Laurens Cherchye, Bram De Rock, Selma Telalagic Walther and Frederic Vermeulen
Subject:We propose a model of the household with consumption, production and revealed preference conditions for stability on the marriage market. We apply the model to a rich panel dataset from Malawi.
Appointment Date: 25 Feb, 2016
Next academic year, Sam Cosaert will start as assistant professor at the Luxembourg Institute of Socio-Economic Research.
New working paper: Transitivity of preferences: when does it matter? Date: 21 Nov, 2015
Authors: Laurens Cherchye, Thomas Demuynck, Bram De Rock
Subject: We de fine the empirical conditions on prices and incomes under which transitivity of preferences has specific testable implications. In particular, we set out necessary and sufficient requirements for budget sets under which consumption choices can violate SARP (Strong Axiom of Revealed Preferences) but not WARP (Weak Axiom of Revealed Preferences).
New working paper: Bounding average treatment effects: a linear programming approach Date: 08 Oct, 2015
Author: Thomas Demuynck
Subject: We show how to obtain bounds on the mean treatment effects by solving a simple linear programming problem. (forthcoming Ec Let)
Matlab, R code and data: dowload
New working paper: The homogeneous marginal utility of income assumption Date: 07 May, 2015
Author: Thomas Demuynck
Subject: This paper develops a test to verify if every agent from a population of heterogenous consumers has the same marginal utility of income function.
New working paper: Efficiency Measures in Regulated Industries: History, Outstanding Challenges and Emerging Solutions Date: 31 Mar, 2015
Authors: Laurens Checye, Bram De Rock, Antonio Estache and Marijn Verschelde
Subject: This paper summarizes the evolution of the use of efficiency measures in efforts to improve the performance of key regulated public services.
New working paper: A Simple Identification Strategy for Gary Becker's Time Allocation Model Date: 27 Mar, 2015
Authors: Laurens Checye, Bram De Rock and Frederic Vermeulen.
Subject: The implementation of Gary Becker's (1965) time allocation model is hampered by the fact that values of the different time uses are usually not observed. We demonstrate that the identification problem can be solved if production shifters are available
New working paper: The Transfer Paradox in Welfare Space Date: 04 Mar, 2015
Authors: Bram De Rock, Thomas Demuynck and Victor Ginsburgh
Subject: We show that in the space of welfare weights, the set of stable equilibria and the set of no-transfer paradox equilibria coincide.
New working paper: Revealed preference with limited consideration Date: 15 Oct, 2014
Authors: Thomas Demuynck and Christian Seel
Subject: This paper derives revealed preference tests for models where individu- als use consideration sets to simplify their consumption problem.
New working paper: A semiparametric stochastic metafrontier analysis at the firm level Date: 28 Jul, 2014
Authors: Marijn Verschelde, Michel Dumont, Glen Rayp and Bruno Merlevede
Subject: In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firm-level competitiveness in Europe.
New working paper: Nonparametric welfare and demand analysis with unobserved individual heterogeneity Date: 24 Mar, 2014
Authors: Sam Cosaert and Thomas Demuynck
Subject:In this paper, we combine elementary revealed preference principles and nonparametric estimation techniques in order to obtain nonparametric bounds on the distribution of the money metric utility over a population of heterogeneous households. We further demonstrate that our methodology can be used to establish bounds on the distribution of the demand function for counterfactual price regimes.
New working paper: Statistical inference for measures of predictive success Date: 24 Mar, 2014
Author:Thomas Demuynck
Subject:We provide statistical inference for measures of predictive success. These measures are frequently used to evaluate and compare the performance of different models of individual and group decision making in experimental and revealed preference studies.
New Working Paper: Household consumption when the marriage is stable Date: 19 Mar, 2014
Authors:Laurens Cherchye, Thomas Demuynck, Bram De Rock and Frederic Vermeulen
Subject:We develop a novel framework to analyze the structural implications of the marriage market for household consumption patterns. We define a revealed preference characterization of efficient household consumption when the marriage is stable. Stability means that the marriage matching is individually rational and has no blocking pairs. An application to Dutch household data demonstrates the empirical usefulness of our theoretical results.
New Working Paper: Revealed Preferences for Diamond Goods Date: 28 Dec, 2013
Authors:Sam Cosaert
Subject: When consumers do not only care for the intrinsic consumption component of commodities but also for the value of a commodity, it can be rational to purchase products as they become more expensive. We develop a theoretical model and the associated revealed preference conditions to analyze commodities with different degrees of diamondness. On the basis of real consumer data from the Russian Longitudinal Monitoring Survey, we test the empirical performance of different models with and without diamond effects
ERC grant Laurens Cherchye received an ERC Consolidator Grant for his project "Structural Household Analysis using Revealed Preferences" (SHARP). New Working Paper: Multi output efficiency with good and bad outputs Date: 12 Oct, 2013
Authors:Laurens Cherchye, Bram De Rock and Barnabé Walheer
Subject: Cherchye et al. (2013) introduced a DEA methodology that is specially tailored for multi-output efficiency measurement. The methodology accounts for jointly used inputs and incorporates information on how inputs are allocated to outputs. In this paper, we present extensions that render the methodology useful to deal with undesirable (or "bad") outputs in addition to desirable (or "good") outputs.
New Working Paper: Revealed preference tests of collectively rational consumption behavior: formulations and algorithms Date: 02 Sep, 2013
Authors:Fabrice Talla Nobibon, Laurens Cherchy, Yves Crama, Thomas Demuynck and Frits C.R. Spieksma
Subject: We focus on revealed preference test of the collective model of household consumption. We show that the decision problem is NP-complete. We propose simulated annealing heuristics, which allow for efficient testing of the model in case of large data sets.
New Working Paper: The Money Pump as a Measure of Revealed Preference Violations: A Comment (forthcoming JPE) Date: 10 Jul, 2013
Authors: Laurens Cherchye, Bram De Rock, Bart Smeulders and Frits Spieksma
Subject: In a recent paper, Echenique et al. proposed the Mean Money Pump Index as an intuitive measure to evaluate the severity of irrational behavior. In this note, we show that computing this measure is computationally hard. To overcome this problem, we propose Maximum and Minimum Money pump indices as easy-to-apply alternatives.
Appointment Thomas Demuynck is appointed as assistant professor at the University of Maastricht. New Working Paper: Gorman revisited: nonparametric conditions for exact linear aggregation Date: 02 May, 2013
Authors: Laurens Cherchye, Ian Crawford, Bram De Rock and Frederic Vermeulen
Subject: We provide a revealed preference characterisation of exact linear aggregation. This guarantees that aggregate demand can be written as a function of prices and aggregate income alone, while abstracting from income-distributional aspects.
New Working Paper: Revealed preference theory for finite choice sets Date: 29 Apr, 2013
Authors: Sam Cosaert and Thomas Demuynck
Subject: In this paper, we adjust the theory of revealed preferences to handle situations where the set of feasible bundles is finite
New Working Paper: Are the smart kids more rational? Date: 13 Dec, 2012
Authors: Sabrina Bruyneel, Laurens Cherchye, Sam Cosaert, Bram De Rock and Siegfried Dewitte
Subject: We use experimental data to study the "rational" consumption behavior of children
New Working Paper: Revealed Preference Analysis for Convex Rationalizations on nonlinear budget sets Date: 29 Nov, 2012
Authors: Laurens Cherchye, Thomas Demuynck and Bram De Rock
Subject: We present necessary and sufficient revealed preference conditions to verify whether a finite data set on nonlinear budget sets is consistent with the maximization of a quasiconcave utility function.
New working paper: Consume now or later? Time inconsistency, collective choice and revealed preference Date: 03 Sep, 2012
Authors: Abi Adams, Laurens Cherchye, Bram De Rock and Ewout Verriest
Subject: This paper develops a revealed preference methodology for exploring whether time inconsistencies in household choice are the product of nonstationarities at the individual level or the result of individual heterogeneity and renegotiation within the collective unit.
New working paper: Sharp for SARP: nonparametric bounds on the behavioural and welfare effects of price changes Date: 03 Sep, 2012
Authors: Richard Blundell, Martin Browning, Laurens Cherchye, Ian Crawford, Bram De Rock and Frederic Vermeulen
Subject: Sharp nonparametric bounds are derived for Hicksian compensating and equivalent variations. The new are sharp under the Strong Axiom of Revealed Preference (SARP). By requiring transitivity they can be used to bound welfare measures.
New working paper: Sharing rule identification for general collective consumption models Date: 19 May, 2012
Authors: Laurens Cherchye, Bram De Rock, Arthur Lewbel and Frederic Vermeulen
Subject: The WP proposes a method to identify bounds (i.e. set identification) on the sharing rule for a general collective household consumption model.
Price of the research council of the K.U.Leuven Date: 25 May, 2012
Bram De Rock has won the price of the research council of the K.U.Leuven. This price is awarded as an encouragement and token of recognition for young and promising researchers.
The ceremony takes place on May 25 at the Universiteitshal, Promotiezaal Naamsestraat 22, 3000 Leuven.
New working paper: Aggregation without the aggravation? Nonparametric analysis of the representative consumer Date: 09 Jan, 2012
Authors: Laurens Cherchye, Ian Crawford, Bram De Rock and Frederic Vermeulen
Subject: The WP provides a revealed preference characterisation of the representative consumer.
New working paper: Nonparametric analysis of multi-output production with joint inputs Date: 19 Dec, 2011
Authors: Laurens Cherchye, Thomas Demuynck, Bram De Rock and Kristof De Witte
Subject: The WP presents a novel nonparametric framework for analyzing cost minimizing production behavior in multi-output settings.
New working paper: revealed preference tests for weak separability: an integer programming approach Date: 26 Oct, 2011
Authors: Laurens Cherchye, Thomas Demuynck and Bram De Rock
Subject: The WP presents an integer programming model to verify the revealed preference conditions for weak separability.
New working paper: A revealed preference analysis of the rational addiction model Date: 13 Jul, 2011
Authors: Thomas Demuynck and Ewout Verriest
Subject: The WP provides a revealed preference analysis of the rational addiction model.
New working paper: Is utility transferable? A revealed preference approach Date: 22 Jun, 2011
Authors: Laurens Cherchye, Thomas Demuynck and Bram De Rock
Subject: The paper presents a revealed preference analysis of the generalized Quasi-linear utility function.