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Comparative Statics for Utility Maximization Models with Nonlinear Budget Constraints

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  • Blomquist, N Soren

Abstract

This paper investigates the properties of demand functions generated by nonlinear budget constraints, and relates them to those of demand functions generated by linear budget constraints. The analysis shows that the properties of "nonlinear" and "linear" demand functions in some respects are similar, but in other respects differ substantially. The study gives conditions under which properties of the "linear" demand functions carry over to the "nonlinear" ones. The implications for the "nonlinear" demand functions of various separability assumptions are also studied. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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  • Blomquist, N Soren, 1989. "Comparative Statics for Utility Maximization Models with Nonlinear Budget Constraints," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 275-296, May.
  • Handle: RePEc:ier:iecrev:v:30:y:1989:i:2:p:275-96
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    Cited by:

    1. Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2016. "Public Provision of Private Goods, Self-Selection, and Income Tax Avoidance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 666-692, October.
    2. Échevin, Damien & Fortin, Bernard, 2014. "Physician payment mechanisms, hospital length of stay and risk of readmission: Evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 36(C), pages 112-124.
    3. Javier Birchenall, 2007. "Escaping high mortality," Journal of Economic Growth, Springer, vol. 12(4), pages 351-387, December.
    4. Bernard Fortin & Nicolas Jacquemet & Bruce Shearer, 2008. "Policy Analysis in the Health-Services Market: Accounting for Quality and Quantity," Cahiers de recherche 0807, CIRPEE.
    5. Brett Day & Ian Bateman & Iain Lake, 2007. "Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 211-232, May.
    6. Suen, Wing & Mo, Pak Hung, 1994. "Simple Analytics of Productive Consumption," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 372-383, April.
    7. Damien Échevin & Bernard Fortin, 2011. "Physician Payment Mechanisms, Hospital Length of Stay and Risk of Readmission: a Natural Experiment," Cahiers de recherche 1112, CIRPEE.
    8. Dyar, Julie A. & Wagner, Jeffrey, 2003. "Uncertainty and species recovery program design," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 505-522, March.
    9. Chavas, Jean-Paul, 2013. "On the microeconomics of food and malnutrition under endogenous discounting," European Economic Review, Elsevier, vol. 59(C), pages 80-96.
    10. Palmquist, Raymond B., 2006. "Property Value Models," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 16, pages 763-819 Elsevier.
    11. Elisabeth Gugl & Justin Leroux, 2015. "The Rotten Kid Theorem and Almost Transferable Utility," CESifo Working Paper Series 5642, CESifo Group Munich.
    12. Kumar, Anil, 2008. "Labor supply, deadweight loss and tax reform act of 1986: A nonparametric evaluation using panel data," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 236-253, February.

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