tag:blogger.com,1999:blog-33399132.post7428774701531292180..comments2024-03-04T08:09:21.453-08:00Comments on Richard's Real Estate and Urban Economics Blog: Are models that assume linear utility useful?Richard Greenhttp://www.blogger.com/profile/02161226214739034402noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-33399132.post-80751042909446493292013-06-24T11:44:13.188-07:002013-06-24T11:44:13.188-07:00Nope.
I have not read the paper but a balance bet...Nope.<br /><br />I have not read the paper but a balance between unrealistic assumptions and fitting what we observe in the real world must always be struck. What the research question is and the relationship that we wish to focus on are the most important considerations when deciding if an assumption makes the model unbelievable. I think in most cases consumption is a very important part of a model so if the findings fall apart when marginal utility is diminishing then I have a problem with it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33399132.post-70483800653916274422013-06-23T11:27:48.544-07:002013-06-23T11:27:48.544-07:00The answer is no. I'm short on time, but that&...The answer is no. I'm short on time, but that's the answer. No.Squarely Rootedhttp://squarelyrooted.wordpress.comnoreply@blogger.com