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Social Indifference Curves and Aggregate Demand

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  • Hal R. Varian

Abstract

Suppose that the government maximizes a fixed social welfare function through the use of policy instruments. These instruments may be classical lump sum transfers of wealth or such second-best instruments as commodity taxes, income taxes, etc. Then under certain conditions the aggregate demand behavior for this economy will appear as though it were generated by a single representative consumer.

Suggested Citation

  • Hal R. Varian, 1984. "Social Indifference Curves and Aggregate Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 403-414.
    • Handle: RePEc:oup:qjecon:v:99:y:1984:i:3:p:403-414.
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    File URL: http://hdl.handle.net/10.2307/1885957
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    Cited by:

    1. Besser, T. & Mann, S., 2015. "Which farm characteristics influence work satisfaction? An analysis of two agricultural systems," Agricultural Systems, Elsevier, vol. 141(C), pages 107-112.
    2. Theis Theisen, 2011. "Household size and city structure," ERES eres2011_231, European Real Estate Society (ERES).
    3. Gahramanov, Emin & Gaibulloev, Khusrav & Younas, Javed, 2017. "Parental Transfers and Fertility: Does the Recipient's Gender Matter?," MPRA Paper 79531, University Library of Munich, Germany.
    4. Seghir, Abdelkrim & Salem, Sherif, 2010. "In nitely-lived agents via two-sided altruism," MPRA Paper 31379, University Library of Munich, Germany.
    5. Wang, Xichao & Gibson, Mark J., 2015. "Trade, non-homothetic preferences, and the impact of country size on wages," Economics Letters, Elsevier, vol. 132(C), pages 121-124.
    6. Michael Jerison, 2023. "Social welfare and the unrepresentative representative consumer," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(1), pages 5-28, February.
    7. Gahramanov Emin & Gaibulloev Khusrav & Younas Javed, 2019. "Parental Transfers, Intra-household Bargaining and Fertility Decision," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-17, January.
    8. Fedor Sandomirskiy & Philip Ushchev, 2024. "The geometry of consumer preference aggregation," Papers 2405.06108, arXiv.org.
    9. Piera Mazzoleni & Elisa Pagani & Federico Perali, 2023. "On the Curvature Properties of “Long” Social Welfare Functions," Mathematics, MDPI, vol. 11(7), pages 1-14, March.

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