This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Exact Insensitivity of Market Budget Shares and the 'Balancing Effect'

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Gaël GIRAUD
Isabelle MARET
Abstract

We reformulate Grandmont's and its successors' notion of behavioral heterogeneity such as to get the exact insensitivity of the aggregate budget share function with respect to changes in prices and income, instead of a mere approximate insensitivity. We propose a non parametric set-up such that, if the population is distributed according to some ``uniform'' probability measure, the aggregate budget share function is constant. The important contribution is that this exact insensitivity is not explained by any insensitivity at the microeconomic level but rather by an exact "balancing effect". We give illustrative examples of populations that fulfill our requirements.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://cournot2.u-strasbg.fr/users/beta/publications/2005/2005-02.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg in its series Working Papers of BETA with number 2005-02.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2005
Date of revision:
Handle: RePEc:ulp:sbbeta:2005-02

Contact details of provider:
Postal: PEGE. 61, Aven. de la For�t-Noire 67000 Strasbourg
Phone: +33 3 90 24 20 69
Fax: +33 3 90 24 20 71
Email:
Web page: http://cournot2.u-strasbg.fr/users/beta/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: Statistical approach; aggregation of demand; behavioral heterogeneity; balancing effect; large economy; Law of Demand; insensitivity of market budget shares.;

Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D30 - Microeconomics - - Distribution - - - General
D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition
D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
E1 - Macroeconomics and Monetary Economics - - General Aggregative Models

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kneip, Alois, 1999. "Behavioral heterogeneity and structural properties of aggregate demand," Journal of Mathematical Economics, Elsevier, vol. 31(1), pages 49-79, February. [Downloadable!] (restricted)
  2. Maret, Isabelle, 1998. "Heterogeneous households}} intertemporal characteristics and the aggregation problem," Research in Economics, Elsevier, vol. 52(2), pages 133-157, June. [Downloadable!] (restricted)
  3. Werner Hildenbrand & Alois Kneip, 1999. "Behavioral Heterogeneity," Discussion Paper Serie A 589, University of Bonn, Germany. [Downloadable!]
  4. Hildenbrand, Werner, 1983. "On the "Law of Demand."," Econometrica, Econometric Society, vol. 51(4), pages 997-1019, July. [Downloadable!] (restricted)
  5. Jerison, Michael, 1999. "Dispersed excess demands, the weak axiom and uniqueness of equilibrium," Journal of Mathematical Economics, Elsevier, vol. 31(1), pages 15-48, February. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.

This page was last updated on 2009-11-9.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.