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Injectivity and the law of demand

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  • Allen, Roy

Abstract

A variety of methodologies require demand to be injective to invert quantities to prices or utility indices. When a version of the law of demand holds, global injectivity and local injectivity are equivalent. Moreover, both can be checked by seeing whether the demand mapping is constant over any line segments.

Suggested Citation

  • Allen, Roy, 2022. "Injectivity and the law of demand," Economics Letters, Elsevier, vol. 215(C).
    • Handle: RePEc:eee:ecolet:v:215:y:2022:i:c:s0165176522001252
    DOI: 10.1016/j.econlet.2022.110496
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    Cited by:

    1. Roy Allen & John Rehbeck, 2020. "Identification of Random Coefficient Latent Utility Models," Papers 2003.00276, arXiv.org.
    2. Hubner, Stefan, 2023. "Identification of unobserved distribution factors and preferences in the collective household model," Journal of Econometrics, Elsevier, vol. 234(1), pages 301-326.

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