Kowal, Paweł (2006): On nesting nonhomothetic preferences. Unpublished.
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We consider nested utility function with nonhomothetic subutility functions. We express demand functions for aggregate goods in terms of marshalian and hicksian demands associated with the standard consumer problem of maximization of aggregate utility function. We also presents a simple method of calibrating such a demand system.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Keywords: | demand systems; nonhomothetic preferences |
| Subjects: | D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory |
| ID Code: | 931 |
| Deposited By: | Pawel Kowal |
| Deposited On: | 26. Nov 2006 |
| Last Modified: | 25. Jul 2011 16:31 |
| References: | [1] T.M. Apostol. Mathematical Analysis. Addison-Wesley Publishing Company,Reading, MA, 2nd edition, 1974. [2] R. J. Cooper and K. R. McLaren. Demand systems based on regular ratio indirect utility functions. working paper, June 2006. [3] W. M. Gorman. Separable utility and aggregation. Econometrica, 27:469–81, 1959. [4] R. McDougall. A new regional household demand system for GTAP. GTAP Technical Papers number 942, September 2003. [5] H. Uzawa. Production functions with constant elasticities of substitution. Review of Economic Studies, 30:291–299, 1962. |
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