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    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in British Journal for the Philosophy of Science following peer review. The definitive publisher-authenticated version Elias Bouacida, Daniel Martin, Predictive Power in Behavioral Welfare Economics, Journal of the European Economic Association, Volume 19, Issue 3, June 2021, Pages 1556–1591, https://doi.org/10.1093/jeea/jvaa037 is available online at: https://academic.oup.com/jeea/article-abstract/19/3/1556/5893294

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    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Predictive Power In Behavioral Welfare Economics

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>30/06/2021
<mark>Journal</mark>Journal of the European Economic Association
Issue number3
Volume19
Number of pages36
Pages (from-to)1556–1591
Publication StatusPublished
Early online date17/08/20
<mark>Original language</mark>English

Abstract

When choices are inconsistent due to behavioral biases, there is a theoretical debate about whether the structure of a model is necessary for providing precise welfare guidance based on those choices. To address this question empirically, we use standard data sets from the lab and field to evaluate the predictive power of two “model-free” approaches to behavioral welfare analysis. We find they typically have high predictive power, which means there is little ambiguity about what should be selected from each choice set. We also identify properties of revealed preferences that help to explain the predictive power of these approaches.

Bibliographic note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in British Journal for the Philosophy of Science following peer review. The definitive publisher-authenticated version Elias Bouacida, Daniel Martin, Predictive Power in Behavioral Welfare Economics, Journal of the European Economic Association, Volume 19, Issue 3, June 2021, Pages 1556–1591, https://doi.org/10.1093/jeea/jvaa037 is available online at: https://academic.oup.com/jeea/article-abstract/19/3/1556/5893294

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