Rationalizing and Curve-Fitting Demand Data with Quasilinear Utilities

Authors

Donald J. Brown
Caterina Calsamiglia

Document Type

Discussion Paper

Publication Date

2-1-2003

CFDP Number

1399R

CFDP Revision Date

2004-07-01

CFDP Pages

11

Abstract

In the empirical and theoretical literature a consumer’s utility function is often assumed to be quasilinear. In this paper we provide necessary and sufficient conditions for testing if the consumer acts as if she is maximizing a quasilinear utility function over her budget set. If the consumer’s choices are inconsistent with maximizing a quasilinear utility function over her budget set, then we compute the “best” quasilinear rationalization of her choices.

Recommended Citation

Brown, Donald J. and Calsamiglia, Caterina, "Rationalizing and Curve-Fitting Demand Data with Quasilinear Utilities" (2003). Cowles Foundation Discussion Papers. 1667.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1667