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Direct utility functions for rank two and quadratic logarithmic continuous demand systems

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  • Arthur Lewbel

    (Boston College)

Abstract

Most continuous consumer demand systems employed in the empirical, theoretical, and aggregation literatures have budget shares linear in one or two functions of total expenditures, and so are rank two (Generalized Linear) or rank three. Examples include the Gorman Polar Form (GPF), quasihomothetic models like the linear expenditure system, Price Independent Generalized Linear or Logarithmic (PIGL or PIGLOG) models like the Translog and AIDS, and Quadratic Logarithmic systems like the QUAIDS model. This paper provides direct utility functions associated with GPF, quasihomothetic, PIGL, PIGLOG, and Quadratic Logarithmic demand systems.

Suggested Citation

  • Arthur Lewbel, 2025. "Direct utility functions for rank two and quadratic logarithmic continuous demand systems," Journal of Productivity Analysis, Springer, vol. 63(3), pages 285-290, June.
    • Handle: RePEc:kap:jproda:v:63:y:2025:i:3:d:10.1007_s11123-025-00760-8
    DOI: 10.1007/s11123-025-00760-8
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