This paper presents a nonparametric analysis of a common class of intertemporal models of consumer choice that relax consumption independence. Within this class and in the absence of any functional form restrictions on instantaneous preferences, we compare the revealed preference conditions for rational habit formation and rational anticipation. We show that these models are observationally equivalent in the presence of finite data sets composed of prices, interest rates, and consumption choices.
Authors
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Ian Crawford
![Matthew Polisson](/sites/default/files/styles/square_desktop/public/2022-05/Matthew_Polisson.jpg?itok=qIHlcqdm)
Research Associate University of Leicester
Professor of Economics at the University of Leicester. His research interests are in applied microeconomics and microeconomic theory.
Journal article details
- DOI
- 10.1016/j.jmateco.2014.03.007
- Publisher
- Elsevier
- Issue
- May 2014
Suggested citation
Crawford, I and Polisson, M. (2014). 'Testing for intertemporal nonseparability' , (2014)
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