The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Nov, 1991, Volume 59, Issue 6
https://doi.org/0012-9682(199111)59:6<1525:EEOTLO>2.0.CO;2-F
p. 1525-1549
Michael Jerison, Werner Hildenbrand, Wolfgang Hardle
A sufficient condition for market demand to satisfy the Law of Demand is that the mean of all households' income effect matrices be positive definite. We show how this mean income effect matrix can be estimated from cross section data under metonymy, an assumption about the distribution of households' characteristics. The estimation procedure uses the nonparametric method of average derivatives. Income effect matrices estimated this way from U.K. family expenditure data are in fact positive definite. This result can be explained by a special form of heteroskedasticity in the data: households' demands are more dispersed at higher income levels.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
