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Distribution of Income and Aggregation of Demand

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Marhuenda, F

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Abstract

Under certain regularity conditions, if the distribution of income is price independent and satisfies a condition on the shape of its graph, then total market demand is monotone. The author's methods allow for density functions increasing on some intervals, like unimodal distributions or even densities with more than one peak. Similar assumptions on the distribution of endowments yield a restricted monotonicity property on the aggregate excess demand function of a Walrasian pure exchange economy with wealth determined by market prices. It follows that the unique equilibrium price is stable. Copyright 1995 by The Econometric Society.

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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 63 (1995)
Issue (Month): 3 (May)
Pages: 647-66
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Handle: RePEc:ecm:emetrp:v:63:y:1995:i:3:p:647-66

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  1. Gael GIRAUD & Isabelle MARET, 2002. "Modelling Behavioral Heterogeneity," Working Papers of BETA 2002-22, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  2. Gael Giraud & Isabelle Maret, 2001. "Behavioral Heterogeneity in Large Economies," Working Papers of BETA 2001-08, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  3. Gael Giraud & Isabelle Maret, 2002. "Behavioral Heterogeneity in Large Economies," Working Papers of BETA 2002-04, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
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This page was last updated on 2009-11-12.


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