Is Spanish consumer behaviour consistent with the utility maximization? A non-parametric response

Abstract

The objective of this paper is to check Spanish data on consumption expenditures and leisure for consistency with maximization of a non-satiated, continuous, concave, monotonic utility function. To this end, we apply the non-parametric approach using annual time-series covering the period 1964 to 1992. The results indicate that Spanish data are consistent with the weak and generalized axioms of the revealed preference theory, that is to say, the sample national data are consistent with the neoclassical theory of consumer behaviour or, in other words, the hypothesis of stability of individual preferences is accepted.