The Houtman-Maks index is a measure of the size of a violation of utility maximizing (i.e., rational) behavior. This note introduces the Stata command hmindex, which calculates the Houtman-Maks index for a data set of prices and observed choices of a consumer. The command is illustrated with an empirical application.
Stata Journal
Consistent Subsets: Computing the Houtman-Maks Index in Stata
Journal Article
Reference
Hjertstrand, Per and Marcos Demetry (2023). “Consistent Subsets: Computing the Houtman-Maks Index in Stata”. Stata Journal 23(2), 578–588. doi.org/10.1177/1536867X231175345
Hjertstrand, Per and Marcos Demetry (2023). “Consistent Subsets: Computing the Houtman-Maks Index in Stata”. Stata Journal 23(2), 578–588. doi.org/10.1177/1536867X231175345
Authors
Per Hjertstrand, Marcos Demetry
