Consistent subsets: Computing the Houtman–Maks index in Stata

• Autores: Marcos Demetry, Per Hjertstrand
• Localización: The Stata journal, ISSN 1536-867X, Vol. 23, Nº. 2, 2023, págs. 578-588
• Idioma: inglés
• DOI: 10.1177/1536867X231175345
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• Resumen

  • The Houtman–Maks index is a measure of the size of a violation of utility-maximizing (that is, rational) behavior. In this article, we introduce the command hmindex, which calculates the Houtman–Maks index for a dataset of prices and observed choices of a consumer. The command is illustrated with an empirical application.