Vandita ,Akshay please help

[kangkan]

Hi...

What are the most common techniques used to estimate the functional form and paramters of utility functions?

thanks

[Akshay Jain]

M not getting ur doubt...wat u r trying to ask....

[kangkan]

Hi...we see in our workbook that the utility function of agent is U(x,y,z)=x^a.y^b.Z^c etc...what are techniques of arriving at the functional form of these by looking at the choices made by the consumer?..i amtrying to calculate the compensating variation for a price change ,but di do not have the utility function...

Hence i  want to derive it :(

[vandita24x7]

Listen for small data questions like one was once asked in dse which had rice and potato etc...i dont remember well...for such one has to use logic and economic intution.
For big data with several variables one can run factor analysis in spss and then with the uncorrelated factors obtained we run a regression and accordingly arrive at the functional form.

vandita

On 19 Jun 2014 00:29, "kangkan [via Discussion forum]" <[hidden email]> wrote:

Hi...we see in our workbook that the utility function of agent is U(x,y,z)=x^a.y^b.Z^c etc...what are techniques of arriving at the functional form of these by looking at the choices made by the consumer?..i amtrying to calculate the compensating variation for a price change ,but di do not have the utility function...

Hence i  want to derive it :(

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