A1095
Title: Nonparametric welfare analysis for discrete choice with multiple compensation timings
Authors: Koshi Nishida - University of Tokyo (Japan) [presenting]
Abstract: The purpose is to consider welfare analysis in a discrete choice framework where income receipts and price payments occur over multiple periods, allowing for unrestricted unobserved heterogeneity in individual preferences. For changes in prices over multiple periods, the definitions of welfare measures are extended, such as compensating variation and equivalent variation, to incorporate income adjustments over time. This framework naturally generalizes previous works by accommodating multiple periods with fully unrestricted heterogeneity in factors such as borrowing constraints, interest rates, and saving behaviors, all of which are assumed to be unobservable to the econometrician. The situations are then clarified, in which the distribution functions of the welfare measures can or cannot be nonparametrically point-identified.
