Preferences and Normal Goods: An Easy-to-Check Necessary and Sufficient Condition
We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.
|Date of creation:||Feb 2010|
|Contact details of provider:|| Web page: http://www.recent.unimore.it/|
More information through EDIRC
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.:
- Alarie, Y. & Bronsard, C. & Ouellette, P., 1988.
"Preferences and Normal Goods : a Necessary and Sufficient Condition,"
Cahiers de recherche
8815, Universite de Montreal, Departement de sciences economiques.
- Alarie, Yves & Bronsard, Camille & Ouellette, Pierre, 1990. "Preferences and normal goods: A necessary and sufficient condition," Journal of Economic Theory, Elsevier, vol. 51(2), pages 423-430, August.
- Alarie, Y. & Bronsard, C. & Ouellette, P., 1988. "Preferences And Normal Goods : A Necessary And Sufficient Condition," Cahiers de recherche 8815, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- John K.-H Quah, 2007. "The Comparative Statics of Constrained Optimization Problems," Econometrica, Econometric Society, vol. 75(2), pages 401-431, 03.
- Leroux, Alain, 1987. "Preferences and normal goods: A sufficient condition," Journal of Economic Theory, Elsevier, vol. 43(1), pages 192-199, October.
When requesting a correction, please mention this item's handle: RePEc:mod:recent:042. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.