Sato's Insight on the Relationship between the Frisch 'Parameter' and the Average Elasticity of Substitution
AbstractThis short note demonstrates that Sato's 1972 insight concerning the equivalence between Frisch's 'money flexibility' parameter and the average elasticity of substitution among commodities needs to be modified if it is to be applied to non-homothetic utility functions. Fortunately the modification is easily implemented.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Monash University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-99.
Date of creation: Jan 1992
Date of revision:
Contact details of provider:
Postal: 11th Floor, Menzies Building, Wellington Road, Clayton, Victoria, 3168
Phone: 03 9905 2398
Fax: 03 9905 2426
Web page: http://www.monash.edu.au/policy/index.htm
More information through EDIRC
Other versions of this item:
- Powell, Alan A., 1992. "Sato's insight on the relationship between the Frisch 'parameter' and the average elasticity of substitution," Economics Letters, Elsevier, vol. 40(2), pages 173-175, October.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
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.:
- Sato, Kazuo, 1972. "Additive Utility Functions with Double-Log Consumer Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 102-24, Jan.-Feb..
- Alan A. Powell & Keith R. McLaren & K.R. Pearson & Maureen Rimmer, 2002.
"Cobb-Douglas Utility - Eventually!,"
Monash Econometrics and Business Statistics Working Papers
12/02, Monash University, Department of Econometrics and Business Statistics.
- Alan A. Powell & Keith R. McLaren & K.R. Pearson & Maureen T.Rimmer, 2002. "Cobb-Douglas Utility - Eventually!," Centre of Policy Studies/IMPACT Centre Working Papers ip-80, Monash University, Centre of Policy Studies/IMPACT Centre.
- Clements, Kenneth W., 2008.
"Price elasticities of demand are minus one-half,"
Elsevier, vol. 99(3), pages 490-493, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge).
If references are entirely missing, you can add them using this form.