The Distance Function in Consumer Behaviour with Applications to Index Numbers and Optimal Taxation.
Section 1 of the paper defines the distance function and discusses its properties. Particular attention is focused on the duality between the distance and cost functions and on the use of the former in deriving compensated inverse demand functions. These latter seem to have been first systematically...
| Publicado en: | Review of Economic Studies Vol. 46; no. 3; pp. 391 - 406 |
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| Formato: | Artículo |
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Oxford University Press / USA
Jul79
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4618206&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4618206 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Jul79 vid: 46 iid: 3 pid: 622 pub: Oxford University Press / USA artinfo: ui: 4618206 10.2307/2297009 ppf: 391 ppct: 15 formats: tig: atl: The Distance Function in Consumer Behaviour with Applications to Index Numbers and Optimal Taxation. aug: au: Deaton, Angus affil: University of Bristol su: Cost Econometrics Consumer behavior Consumers Index numbers (Economics) Utility theory Taxation Mathematical economics Economics sug: subj: Cost Econometrics Consumer behavior Consumers Index numbers (Economics) Utility theory Taxation Mathematical economics Economics ab: Section 1 of the paper defines the distance function and discusses its properties. Particular attention is focused on the duality between the distance and cost functions and on the use of the former in deriving compensated inverse demand functions. These latter seem to have been first systematically treated by Hicks (1956, Chapter XVI) who used them to define "q-complements" and "q-substitutes" in contrast to the now standard "p-complements" and "p-substitutes". The matrix of q-substitution effects is the Antonelli matrix of integrability theory, Samuelson (1950), and we show how this and the Slutsky matrix of p-substitution effects can be regarded as generalized inverses of one another. Section 2 takes up Malmquist's (1953) analysis and discusses the theory of quantity and utility indices based on the distance function and its dual relation to the price and utility indices based on the cost function. Finally, Section 3 gives a brief foretaste of the application of the analysis. The familiar Ramsey rule for optimal taxation in an equity disregarding society is derived in a new and very simple form. Instead of stating the optimal tax rule in terms of its effects upon quantities, the distance function approach allows a direct characterization of the tax rates themselves. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1979 holdings: @attributes: islocal: N |
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