Hildenbrand, Werner, and Alois Kneip
Title: Family Expenditure Data, Heteroscedasticity and the Law of Demand
Abstract: In this paper we present some results of a data analysis of Family Expenditure Surveys for the United Kingdom and France. We shall show that all consumption expenditure data sets which we have analysed so far exhibit characteristic features that we shall call "increasing spread" and "average increasing dispersion". Moreover, the property of "average increasing dispersion" is well supported by the data which have been analysed so far. The hypothesis of increasing spread supports the Law of Market Demand to hold. One can also show that the hypothesis of increasing dispersion gives support to a weaker property of the market demand function, that is to say, the Weak Axiom of Revealed Preference.
Creation-Date: Dezember 1992
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