| Sumario: | The article discusses utility functions transformations. Researchers Richard Dusansky and Peter Kalman (D-K) have claimed that the standard condition that utility functions be homogeneous of degree zero (HDO) in money and prices is not a necessary one for demand functions to be free of money illusion. They have proposed a "more general" set of conditions that imply illusion-free demand functions. Researchers Clower and Riley (C-R) have claimed that, on the contrary, the standard condition serves completely to characterize the class of illusion-free demand functions and that the conditions of D-K achieve only a spurious generality. However, D-K have apparently rebutted this claim by pointing out what is actually a minor error in the paper by C-R. Thus, D-K's conditions are more general only in the sense that they allow a consumer whose ordinal utility is HDO to choose an index of cardinal utility that depends upon the vector of money prices. The spuriousness of this generality arises from the well- known fact that (under conditions of certainty) no operational significance can be attached to the choice of a cardinal utility index.
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