Money Illusion and the Aggregate Consumption Function.

A standard result of the theory of rational consumer behavior in a static monetary economy is that a consumers demand functions for commodities are homogeneous of degree zero in prices, money income and money wealth. Economist Don Patinkin has defined this condition as the absence of money illusion....

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Bibliographic Details

Published in:	American Economic Review Vol. 59; no. 5; pp. 832 - 850
Main Authors:	Branson, William H., Klevorick, Alvin K.
Format:	Article
Published:	American Economic Association Dec69
Subjects:	Consumer behavior Money illusion Prices Patinkin, Don Demand function Consumption (Economics) Real income Wealth
Online Access:	View this record in EBSCOhost