We use a money pump argument to measure deviations from the revealed preference axioms. Using a panel data set of food expenditures, we find a large number of violations of the weak axiom of revealed preference. The money pump costs are small, which indicate that the violations of revealed preference are not severe. While most households’ behavior deviates from rationality, by our measure they ...

This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit data covering the period 1988 to 2006 across many US states. Moreover, we provide new evidence on the importance of cotinine measures in explaining long-run smoking behaviour and we investigate the sensitivity of smoking cessatio...

Two econometric issues arise in the structural estimation of consumer or producer demand systems in the presence of many binding non-negativity constraints. First, most existing methods entail the evaluation of multivariate probability integrals. Second, the issue of statistical coherency must be addressed. We circumvent both of these issues using Gibbs Sampling, along with data augmentation an...

Laboratory evidence shows that when people have to argue for a given position, they persuade themselves about the position’s factual and moral superiority. Such self-persuasion limits potential of communication resolve conflict reduce polarization. We test this phenomenon in field setting, at international debating competitions randomly assign experienced motivated debaters one side topical mot...

Much progress has been made in recent years in developing and applying a direct measure of utility using survey questions on satisfaction with income and with life in general. In this paper we apply this new type of measurement to the study of money illusion. Using data from the German Socio-Economic Panel for the years 1993 to 2003, we cannot reject the hypothesis of no money illusion. JEL Cla...

Using data from a unique pricing experiment, we test Vickrey’s conjecture that responsive pricing can be used to smooth demand shocks. Our evidence shows that increasing the responsiveness of price to demand conditions reduces the magnitude of deviations in capacity utilization rates from a pre-determined target level. We discuss implications for the use of demand-side incentives to deal with c...

Can be accept a variety of viewpoints on genetically modified organism, as well the products made using them. Therefore, trade regulation rule base is different when considering countries. It noted that in particular European Union member states formed fairly tight trading policies organism and products. The article deals with analysis use Union. object research – EU. aim EU’s legal their marke...

Standard welfare economic analysis evaluates all actions by their consequences. However, evidence from other disciplines suggests that the procedures by which decisions are made also affects the welfare of individuals. This paper outlines six characteristics on which judgements about procedural justice may be based. Using the example of health care rationing, we examine the importance of each c...

We show that in almost every economy with separable externalities, every competitive equilibrium can be Pareto improved by a package of anonymous commodity taxes that causes prices to adjust and markets to reclear at different levels of individual consumption. This constrained suboptimality of competitive allocations might provide a rationale for economic policy in economies with externalities....

For many people “solidarity” has become a meaningless word used in slogans – too often used without leading to any economic consequences. We show in this paper conditions under which solidarity can be a powerful instrument. In a solidary action, an individual in a group contributes to a series of actions that aims for a reallocation of scarce resources. The willingness to contribute is mainly i...