Nonlinear budget set regressions in random utility models: Theory and application to taxable income
随机效用模型中的非线性预算集回归:理论与应税收入应用
This paper is about the nonparametric regression of a choice variable on a nonlinear budget set under utility maximization with general heterogeneity, i.e. in the random utility model (RUM). We show that utility maximization and convex budget sets make this regression three dimensional with a more parsimonious specification than previously derived. We show that nonconvexities in the budget set will have little effect on these results in important cases. We characterize all…