ω-Homothetic Preferences: Theory and Applications.

This paper develops a new class of homothetic preferences which generate Marshallian demand curves for individual goods which can be concave, convex or linear in own price under the assumption that agents treat aggregate price indices as given (as in Dixit-Stiglitz, 1977). The preferences are repres...

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Detalles Bibliográficos
Publicado en:Scottish Journal of Political Economy Vol. 48; no. 2
Autores principales: Datta, Bipasa, Dixon, Huw
Formato: Artículo
Publicado: Wiley-Blackwell May2001
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/1467-9485.00191
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        atl: ω-Homothetic Preferences: Theory and Applications.
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          Datta, Bipasa
          Dixon, Huw
      su:
        Demand function
        Elasticity (Economics)
        Duopolies
        Neoclassical school of economics
      sug:
        subj:
          Demand function
          Elasticity (Economics)
          Duopolies
          Neoclassical school of economics
      ab: This paper develops a new class of homothetic preferences which generate Marshallian demand curves for individual goods which can be concave, convex or linear in own price under the assumption that agents treat aggregate price indices as given (as in Dixit-Stiglitz, 1977). The preferences are represented by a cost function which has two parameters: one determining the curvature of the Marshallian demand; the other determining the elasticity of demand when all prices are equal. The elasticity of demand varies with relative prices. Illustrative examples are given of Cournot duopoly and exchange rate pass-through.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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