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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
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Handle: RePEc:pae:wpaper:05-03

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Keywords: Constant elasticity of substitution implicit functions preferences demand

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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