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All λ-separable demands and rationalizing utility functions

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  • Ligon, Ethan

Abstract

Frisch demands depend on prices and a multiplier λ associated with the consumer’s budget constraint. The case in which demands are separable in λ has been the case of greatest empirical interest, since latent variable methods can be adopted to control for consumer wealth when estimating demands.

Suggested Citation

  • Ligon, Ethan, 2016. "All λ-separable demands and rationalizing utility functions," Economics Letters, Elsevier, vol. 147(C), pages 16-18.
    • Handle: RePEc:eee:ecolet:v:147:y:2016:i:c:p:16-18
    DOI: 10.1016/j.econlet.2016.08.010
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    References listed on IDEAS

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    2. Fally, Thibault, 2022. "Generalized separability and integrability: Consumer demand with a price aggregator," Journal of Economic Theory, Elsevier, vol. 203(C).
    3. Ligon, Ethan, 2023. "Risk sharing tests and covariate shocks," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2zr503fq, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Thibault Fally, 2018. "Integrability and Generalized Separability," NBER Working Papers 25025, National Bureau of Economic Research, Inc.

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