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On nesting nonhomothetic preferences

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  • Kowal, Paweł

Abstract

We consider nested utility function with nonhomothetic subutility functions. We express demand functions for aggregate goods in terms of marshalian and hicksian demands associated with the standard consumer problem of maximization of aggregate utility function. We also presents a simple method of calibrating such a demand system.

Suggested Citation

  • Kowal, Paweł, 2006. "On nesting nonhomothetic preferences," MPRA Paper 931, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:931
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    References listed on IDEAS

    as
    1. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 291-299.
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    More about this item

    Keywords

    demand systems; nonhomothetic preferences;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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