Symmetry Conditions for Market Demand Functions.

Systems of community excess demand (or aggregate market demand) functions, as opposed to individual demand functions, need not satisfy any restrictions other than an adding-up property (Walras' Law) if the number of consumers is greater than the number of goods (Sonnenschein (1972, 1973a, b), Debreu...

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Publicado en:Review of Economic Studies Vol. 47; no. 3; pp. 595 - 602
Autor principal: Diewert, W.E.
Formato: Artículo
Publicado: Oxford University Press / USA Apr80
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Symmetry Conditions for Market Demand Functions.
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        au: Diewert, W.E.
        affil: University of British Columbia
      su:
        Demand function
        Economic demand
        Consumer preferences
        Consumer goods
        Utility theory
        Econometrics
        Economics
        Mathematical models of consumption
      sug:
        subj:
          Demand function
          Economic demand
          Consumer preferences
          Consumer goods
          Utility theory
          Econometrics
          Economics
          Mathematical models of consumption
      ab: Systems of community excess demand (or aggregate market demand) functions, as opposed to individual demand functions, need not satisfy any restrictions other than an adding-up property (Walras' Law) if the number of consumers is greater than the number of goods (Sonnenschein (1972, 1973a, b), Debreu (1974), McFadden et al. (1974), Mantel (1974, 1975), Diewert (1977)). In particular, in general there will be no symmetry restrictions of the type derived by Slutsky (1915) for a system of demand functions generated by a single utility maximizing consumer. This paper is concerned with the econometric implications of these results. In particular, we look for assumptions on either tastes or the distribution of income which will allow us to utilize the Slutsky symmetry conditions in the econometric estimation of market demand equations. In Section 2 we postulate that every consumer has the same preferences, and individual incomes can differ arbitrarily, while in Section 3 we allow for some variations in individual preferences, but the distribution of income is restricted.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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