Testable Restrictions on the Equilibrium Manifold under Random Preferences

Borradores de Economia
Número: 
233
Publicado: 
Clasificación JEL: 
D12, D70, D51
Palabras clave: 
General equilibrium, Revealed preferences, Random utility, Testable restrictions.

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General equilibrium theory was criticized for its apparent irrefutability, as seemingly implied by the Sonnenschein-Mantel-Debreu theorem. This view was challenged by Brown and Matzkin (1996), who showed the existence of testable restrictions on the equi