| Abstract: | The objective of this paper is to test the utility maximization hypothesis in various Western countries using the non-parametric approach based on the revealed preference theory. The data employed are annual time series covering the period 1964 to 1992 of per capita consumption and prices from Germany, France, the United Kingdom, Spain, Sweden and Canada. The results indicate that all sample countries are consistent with the weak, strong and generalized axioms of the revealed preference theory. This implies that the observed behaviour of these consumers is consistent with the condition of utility maximization or, in other words, that the hypothesis of stability of individual preferences is accepted. |
