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On nesting nonhomothetic preferences

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Author Info
Kowal, Paweł

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Abstract

We consider nested utility function with nonhomothetic subutility functions. We express demand functions for aggregate goods in terms of marshalian and hicksian demands associated with the standard consumer problem of maximization of aggregate utility function. We also presents a simple method of calibrating such a demand system.

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File URL: http://mpra.ub.uni-muenchen.de/931/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 931.

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Date of creation: Nov 2006
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Handle: RePEc:pra:mprapa:931

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Related research
Keywords: demand systems; nonhomothetic preferences;

Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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References listed on IDEAS
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  1. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
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