Chapter 5 The GFT Utility Function
Quantifying Consumer Preferences
ISBN: 978-1-84855-312-5, eISBN: 978-1-84855-313-2
Publication date: 29 May 2009
Abstract
This chapter presents an exposition of the Generalized Fechner–Thurstone (GFT) direct utility function, the system of demand functions derived from it, other systems of demand functions from which it can be derived, and its purpose and the econometric circumstances that motivated its original development. Its use in econometrics is demonstrated by an application to household consumer survey data which explores the relationship between prices, on the one hand, and expected exogenous preference changers such as household size, schooling of heads of household, and other social factors, on the other.
Keywords
Citation
Basmann, R.L., Hayes, K., McAleer, M., McCarthy, I. and Slottje, D.J. (2009), "Chapter 5 The GFT Utility Function", Slottje, D.J. (Ed.) Quantifying Consumer Preferences (Contributions to Economic Analysis, Vol. 288), Emerald Group Publishing Limited, Leeds, pp. 119-147. https://doi.org/10.1108/S0573-8555(2009)0000288008
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited