Blundell et al. pioneered the sequential maximum path approach to counter the criticism of low power in statistical tests of this theory.
Blundell et al. pioneered the sequential maximum path approach to counter the criticism of low power in statistical tests of this theory. That critique arose from the observation that data sets used to test this theory showed consistent increases in wages during the post world-war period, making it difficult to reject this theory's predictions. Afriat also proposed the "cyclical consistency" criterion equivalent to the generalized axiom of this theory. H. S. Houthakker postulated the "strong form" axiom of this theory, which suggests the existence of well-behaved indifference curves. Behavioral economists point to context effects as an argument against the normative interpretation of its namesake observations. This theory relies on observations of consumption bundles and prices to construct utility functions for agents. For 10 points, identify this theory pioneered by Paul Samuelson, which uses observed choices to infer the responses of economic agents.
Blundell et al. pioneered the sequential maximum path approach to counter the criticism of low power in statistical tests of this theory.
revealed preferences [prompt on consumer choice theory; prompt on partial answer]