Colby, Scott and Tim, Graciano and Jeffrey, LaFrance and Rulon, Pope (2011): Money illusion, Gorman and Lau.
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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|
|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
|Depositing User:||Tim Graciano|
|Date Deposited:||09. Aug 2011 16:44|
|Last Modified:||16. Feb 2013 03:36|
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