Nonparametric Welfare Analysis

Nonparametric Welfare Analysis∗

Exact consumers surplus and deadweight loss are the most widely used welfare and economic efficiency measures. These measures can be computed from demand functions in straightforward ways. Nonparametric estimation can be used to estimate the welfare measures. In doing so it seems important to account correctly for unobserved heteroeneity given the high degree of unexplained demand variation oft...

THE NONPARAMETRIC APPROACH TO APPLIED WELFARE ANALYSIS By

Changes in total surplus and deadweight loss are traditional measures of economic welfare. We propose necessary and sufficient conditions for rationalizing consumer demand data with a quasilinear utility function. Under these conditions, consumer surplus is a valid measure of consumer welfare. For nonmarketed goods, we propose necessary and sufficient conditions on market data for efficient pro...

Nonparametric analysis of covariance

In the problem of testing the equality of k regression curves from independent samples we discuss three methods using nonparametric estimation techniques of the regression function The rst test is based on a linear combination of estimators for the integrated variance function in the individual samples and in the combined sample The second approach transfers the classical one way analysis of va...

Nonparametric Independent Component Analysis

Fractional Nonparametric Cointegration Analysis

This paper provides a theoretical fractional cointegration analysis in a nonparametric framework. We solve a generalized eigenvalues problem, extending Bierens’ (1997) approach. To this end, a couple of random matrices is constructed, distinguishing between stationary and nonstationary part of the fractional integrated process. The asymptotic behavior of such matrices is studied and convergence...