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Implicit Additive Preferences: A Further Generalization of the CES

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Author Info
Paul Preckel ()
Thomas Hertel () (Department of Agricultural Economics, College of Agriculture, Purdue University)
John Cranfield ()

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Abstract

The CES is generalized by extension of the work of Hanoch (1975) resulting in implicit, direct and indirect relationships between utility and consumption. Expressions for substitution and income elasticities are developed and observed to be variable, rather than constant as in the CES case.

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Publisher Info
Paper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 05-03.

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Length: 13 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:pae:wpaper:05-03

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Related research
Keywords: Constant elasticity of substitution; implicit functions; preferences; demand;

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

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  1. Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May. [Downloadable!] (restricted)
  2. Maureen T. Rimmer & Alan A. Powell, 1992. "An Implicitly Directly Additive Demand System: Estimates for Australia," Centre of Policy Studies/IMPACT Centre Working Papers op-73, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  3. Maureen T. Rimmer & Alan A. Powell, 1992. "Demand Patterns Across the Development Spectrum: Estimates for the AIDADS System," Centre of Policy Studies/IMPACT Centre Working Papers op-75, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  4. 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. [Downloadable!]
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  5. Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September. [Downloadable!] (restricted)
  6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
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