THE GENERALIZED ALCHIAN-ALLEN THEOREM: A SLUTSKY EQUATION FOR RELATIVE DEMAND.

We generalize the Alchian-Allen theorem so as to account for income and endowment effects and provide two versions of a Generalized Alchian-Allen theorem: one for a unit cost component and one for a proportional cost component. Both versions provide a decomposition of an uncompensated change in the...

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Publicado en:Economic Inquiry Vol. 53; no. 4; pp. 1893 - 1908
Autores principales: Minagawa, Junichi, Upmann, Thorsten
Formato: Artículo
Publicado: Wiley-Blackwell Oct2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/ecin.12205
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        atl: THE GENERALIZED ALCHIAN-ALLEN THEOREM: A SLUTSKY EQUATION FOR RELATIVE DEMAND.
      aug:
        au:
          Minagawa, Junichi
          Upmann, Thorsten
        affil:
          Faculty of Economics, Chuo University, 742‐1 Higashinakano, Hachioji Tokyo, 192‐0393, Japan
          Bielefeld University, Faculty of Business Administration and Economics, Postfach 10 01 31, Bielefeld NRW, 33501, Germany
      su:
        Income
        Supply & demand
        Endowment effect (Economics)
        Real property
        Child care laws
      sug:
        subj:
          Income
          Supply & demand
          Lessors of Other Real Estate Property
          Offices of Real Estate Agents and Brokers
          Endowment effect (Economics)
          Real property
          Child care laws
      ab: We generalize the Alchian-Allen theorem so as to account for income and endowment effects and provide two versions of a Generalized Alchian-Allen theorem: one for a unit cost component and one for a proportional cost component. Both versions provide a decomposition of an uncompensated change in the demand ratio of two goods into a substitution effect and an income-endowment effect-and may thus be regarded as extensions of the familiar Slutsky equation for relative demand. Finally, we apply our results to the choice of real estates and to parental time allocation decisions, the latter providing implications for child care policies. ( JEL D11, H21, J22, R21)
      pubtype: Academic Journal
      doctype: Article
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    language: English
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