IDEAS home Printed from https://ideas.repec.org/a/bla/ecinqu/v53y2015i4p1893-1907.html
   My bibliography  Save this article

The Generalized Alchian–Allen Theorem: A Slutsky Equation For Relative Demand

Author

Listed:
  • Junichi Minagawa
  • Thorsten Upmann

Abstract

type="main" xml:id="ecin12205-abs-0001"> We generalize the Alchian–Allen theorem so as to account for income and endowment effects and provide two versions of a Generalized Alchian–Allen theorem: one for a unit cost component and one for a proportional cost component. Both versions provide a decomposition of an uncompensated change in the demand ratio of two goods into a substitution effect and an income-endowment effect—and may thus be regarded as extensions of the familiar Slutsky equation for relative demand. Finally, we apply our results to the choice of real estates and to parental time allocation decisions, the latter providing implications for child care policies . ( JEL D11, H21, J22, R21)

Suggested Citation

  • Junichi Minagawa & Thorsten Upmann, 2015. "The Generalized Alchian–Allen Theorem: A Slutsky Equation For Relative Demand," Economic Inquiry, Western Economic Association International, vol. 53(4), pages 1893-1907, October.
    • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:4:p:1893-1907
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/ecin.2015.53.issue-4
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Junichi Minagawa & Thorsten Upmann, 2019. "Price Effects on Compound Commodities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(2), pages 630-646, April.
    2. Junichi Minagawa & Thorsten Upmann, 2016. "Price Effects on Compound Commodities," CESifo Working Paper Series 6060, CESifo.

    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecinqu:v:53:y:2015:i:4:p:1893-1907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.