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New products with a symmetric AIDS expenditure function

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  • Feenstra, Robert C.

Abstract

We study a symmetric AIDS expenditure function that allows for variation in the range of goods. Solving for the reservation prices for goods not available, a convenient form for the expenditure function is obtained. This functional form should prove useful in monopolistic competition models were the range of products changes due to entry and exit.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 106 (2010)
Issue (Month): 2 (February)
Pages: 108-111

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Handle: RePEc:eee:ecolet:v:106:y:2010:i:2:p:108-111

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: New products Translog AIDS Monopolistic competition;

References

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  1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  2. Marc J. Melitz & Gianmarco I.P. Ottaviano, 2005. "Market Size, Trade, and Productivity," Development Working Papers 201, Centro Studi Luca d\'Agliano, University of Milano.
  3. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Sudekum, 2008. "Trade, Wages, and Productivity," Cahiers de recherche 0826, CIRPEE.
  4. Shubham Chaudhuri & Pinelopi K. Goldberg & Panle Jia, 2006. "Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India," Working Papers id:772, eSocialSciences.
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  6. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  7. Feenstra, Robert C., 2003. "A homothetic utility function for monopolistic competition models, without constant price elasticity," Economics Letters, Elsevier, vol. 78(1), pages 79-86, January.
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