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Market Demand Elasticity and Income Inequality

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  • Ibragimov, Rustam
  • Ibragimov, Marat

Abstract

This paper deals with the analysis of the relation between aggregate demand for a consumption good and the distribution of income across consumers. We obtain sufficient conditions under which changes in income inequality lead to an increase or decrease in the market demand elasticities. The conditions are satisfied for individual demand functions commonly used in economic models, in particular, for the typical demand functions on luxury goods and necessities.

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File URL: http://dash.harvard.edu/bitstream/handle/1/2623728/ibragimov_market%20demand.pdf
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Bibliographic Info

Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 2623728.

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Date of creation: 2007
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Publication status: Published in Economic Theory
Handle: RePEc:hrv:faseco:2623728

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Citations

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Cited by:
  1. repec:wii:bpaper:bowp:088 is not listed on IDEAS
  2. Rustam Ibragimov & Marat Ibragimov & Jovlon Karimov & Galiya Yuldasheva, 2012. "Robust Analysis of Income Inequality Dynamics in Russia: t-Statistic Based Approaches," wiiw Balkan Observatory Working Papers, The Vienna Institute for International Economic Studies, wiiw 105, The Vienna Institute for International Economic Studies, wiiw.
  3. Hennessy, David A. & Lapan, Harvey E., 2009. "Harmonic symmetries of imperfect competition on circular city," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 124-146, January.
  4. Rustam Ibragimov & Marat Ibragimov & Rufat Khamidov, 2010. "Measuring Inequality in CIS Countries: Theory and Empirics," wiiw Balkan Observatory Working Papers, The Vienna Institute for International Economic Studies, wiiw 88, The Vienna Institute for International Economic Studies, wiiw.

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