Colby, Scott and Tim, Graciano and Jeffrey, LaFrance and Rulon, Pope (2011): Money illusion, Gorman and Lau.

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Abstract
Any demand equation satisfying Lau’s (1982) Fundamental Theorem of Exact Aggregation and is 0 homogeneous in prices and income will have a Gorman (1981) functional form for each income term. This property does not depend on symmetry or adding up. The implications of this result are illustrated by an extensive example.
Item Type:  MPRA Paper 

Original Title:  Money illusion, Gorman and Lau 
Language:  English 
Keywords:  Demand, exact aggregation, functional form, homogeneity 
Subjects:  D  Microeconomics > D1  Household Behavior and Family Economics > D11  Consumer Economics: Theory D  Microeconomics > D0  General > D01  Microeconomic Behavior: Underlying Principles 
Item ID:  32709 
Depositing User:  Tim Graciano 
Date Deposited:  09. Aug 2011 16:44 
Last Modified:  16. Feb 2013 03:36 
References:  Boyce, W.E. and R.C. DiPrima. 1977. Elementary Differential Equations. 3rd Edition, New York: John Wiley & Sons. Cohen, A. 1933. An Elementary Treatise on Differential Equations. 2nd Edition, Boston: D.C. Heath & Company. Gauss, F.C. 1799. New Proof of the Theorem That Every Algebraic Rational Integral Function In One Variable can be Resolved into Real Factors of the First or the Second Degree. Ph.D. dissertation, Julia Carolina Academy, Helmstedt, Germany. Gorman, W.M. 1953. “Community Preference Fields.” Econometrica 21: 6380. Gorman, W.M.1961. “On a Class of Preference Fields.” Metroeconomica 13(1961):5356. Gorman, W.M. 1981. “Some Engel Curves.” In A. Deaton, ed. Essays in Honour of Sir Richard Stone, Cambridge: Cambridge University Press. Howe, H., R.A. Pollak, and T.J. Wales. 1979. “Theory and Time Series Estimation of the Quadratic Expenditure System.” Econometrica 47: 12311247. Lau, L.J. 1982. “A Note on the Fundamental Theorem of exact Aggregation.” Economics Letters 9: 119126. Lewbel, A. 1990. “Full Rank Demand Systems.” International Economic Review 31, 2: 289300. Muellbauer, J. 1975. “Aggregation, Income Distribution and Consumer Demand.” Review of Economic Studies 42: 525543. Muellbauer, J. 1976. “Community Preferences and the Representative Consumer.” Econometrica 44: 979999. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/32709 