This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

In Quest of the Slutsky Diamond

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
de La Grandville, Olivier
Abstract

The Slutsky equation can be constructed as a parallelogram (a diamond), the area of which is proportional to the elasticity of substitution. This construction permits to show immediately that demand functions become concave on an interval if the elasticity of substitution increases sufficiently. Also, the diamond sheds light on the fact that the production level increases with the elasticity of substitution. As an application, the author shows that the elasticity of substitution has a direct bearing not only on the rate of growth of an economy, but also on the very existence of sustained growth. Copyright 1989 by American Economic Association.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0002-8282%28198906%2979%3A3%3C468%3AIQOTSD%3E2.0.CO%3B2-Y&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 79 (1989)
Issue (Month): 3 (June)
Pages: 468-81
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:aea:aecrev:v:79:y:1989:i:3:p:468-81

Contact details of provider:
Email:
Web page: http://www.aeaweb.org/aer/
More information through EDIRC

Order Information:
Web: http://www.aeaweb.org/subscribe.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chris Papageorgiou & Kaz Miyagiwa, . "The Elasticity of Substitution, Hicks' Conjectures, and Economic Growth," Departmental Working Papers 2003-08, Department of Economics, Louisiana State University. [Downloadable!]
  2. Kaz Miyagiwa & Chris Papageorgiou, 2007. "Endogenous Aggregate Elasticity of Substitution," Emory Economics 0707, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  3. Andreas Irmen & Rainer Klump, 2007. "Factor Substitution, Income Distribution, and Growth in a Generalized Neoclassical Model," Working Papers 0453, University of Heidelberg, Department of Economics, revised Oct 2007. [Downloadable!]
    Other versions:
  4. Jakub, GROWIEC & Ingmar, SCHUMACHER, 2006. "On Technical Change in the Elasticities of Resource Inputs," Discussion Papers (ECON - Département des Sciences Economiques) 2006031, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
    Other versions:
  5. Arnaud Dupuy & Philip S. Marey, 2007. "Shifts and Twists in the Relative Productivity of Skilled Labor," IZA Discussion Papers 2694, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Debdulal Mallick, 2007. "The Role of Elasticity of Substitution in Economic Growth: A Cross-Country Test of the La Grandville Hypothesis," Economics Series 2007_04, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  7. Debdulal Mallick, 2007. "Growth and Slowdown of Nations: What Role for the Elasticity of Substitution?," Economics Series 2007_02, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  8. GROWIEC, Jakub, 2006. "A new class of production functions and an argument against purely labor-augmenting technical change," CORE Discussion Papers 2006056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
    Other versions:
Statistics
Access and download statistics

Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.

This page was last updated on 2009-12-13.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.