Demand is Heterogenous in Grandmonts Model
AbstractWe show that Grandmonts (1992) model of demand heterogeneity can be a model of heterogeneity in the complementary or sign-balancing sense. By this we mean that heterogeneity has the following form: given a change in price, agents respond heterogenously - some by increasing their expenditure share on a good, others by diminishing it, so that the average expenditure share of all goods remain approximately unchanged.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 2001-W12.
Date of creation: 01 Jan 2001
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- Werner Hildenbrand & Alois Kneip, 2005. "On behavioral heterogeneity," Economic Theory, Springer, vol. 25(1), pages 155-169, 01.
- John Quah & Gael Giraud, 2002.
"Heterotic Models of Aggregate Demand,"
Economics Series Working Papers
2002-W18, University of Oxford, Department of Economics.
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