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The Income-Demand Curve: Implicit Function and Data Analysis Methods

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  • Shuji Takahashi

    (Kanto-Gakuin University)

Abstract

By using implicit function, utility and demand functions with inferior goods are developed. It has an advantage in tractability and extendability. But, the systematic data fitting method is not developed yet. This article presents a discussion of this fitting method and other matters: (1) a utility and demand function suitable for data fitting; (2) a systematic method for the data fitting; and (3) a 48-good utility function that generated income demand curves that are well fitted to 48-good data of the Japanese Household Survey 2018.

Suggested Citation

  • Shuji Takahashi, 2021. "The Income-Demand Curve: Implicit Function and Data Analysis Methods," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(1), pages 51-66, March.
    • Handle: RePEc:spr:jqecon:v:19:y:2021:i:1:d:10.1007_s40953-020-00217-9
    DOI: 10.1007/s40953-020-00217-9
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    References listed on IDEAS

    as
    1. Epstein, Gil S & Spiegel, Uriel, 2000. "A Production Function with an Inferior Input," Manchester School, University of Manchester, vol. 68(5), pages 503-515, September.
    2. Takahashi, Shuji, 2019. "Demand Functions with Inferior Goods: The Implicit Function Approach," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(1), pages 79-105, June.
    3. Gil S. Epstein & Uriel Spiegel, 2000. "A Production Function with an Inferior Input," Manchester School, University of Manchester, vol. 68(5), pages 503-515, September.
    4. Moffatt, Peter G., 2002. "Is Giffen behaviour compatible with the axioms of consumer theory?," Journal of Mathematical Economics, Elsevier, vol. 37(4), pages 259-267, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inferior goods; Income-demand curve; Utility function;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D2 - Microeconomics - - Production and Organizations

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