Heterotic Models of Aggregate Demand
A common theme in the theory of demand aggregation is that market demand can acquire properties which are not always individually present among the agents who make up that market, a phenomenon we call heterosis in this paper. This paper focusses on the well known result that with a suitable distribution of demand behavior (arising perhaps from the underlying distribution of preferences), market demand can become approximately a linear function of income or even taken an approximate Cobb-Douglas properties. We highlight the mathematical arguments underpinning these models and show that in the right context, it is possible to carry the arguments further and achieve exact rather than just approximate results: exact Cobb-Douglas market demand or exact linearity of market demand with respect to income.
|Date of creation:||01 Jul 2002|
|Date of revision:|
|Contact details of provider:|| Web page: https://www.nuffield.ox.ac.uk/economics/|
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.:
- Michael Jerison, 1998.
"Dispersed Excess Demands, the Weak Axiom and Uniqueness of Equilibrium,"
98-03, University at Albany, SUNY, Department of Economics.
- 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.
- Grandmont, Jean-Michel, 1992.
"Transformations of the commodity space, behavioral heterogeneity, and the aggregation problem,"
Journal of Economic Theory,
Elsevier, vol. 57(1), pages 1-35.
- Jean-Michel Grandmont, 1991. "Transformations of the Commodity Space, Behavioral Heterogeneity and the Aggregation Problem," Cowles Foundation Discussion Papers 987, Cowles Foundation for Research in Economics, Yale University.
- Grandmont Jean-michel, 1991. "Transformation of the commodity space, behavioral heterogeneity and the aggregation problem," CEPREMAP Working Papers (Couverture Orange) 9114, CEPREMAP.
- Michael Jerison & John K.-H. Quah, 2006. "Law of Demand," Discussion Papers 06-07, University at Albany, SUNY, Department of Economics.
- John Quah, 2001.
"Demand is heterogenous in grandmonts model,"
2001-W12, Economics Group, Nuffield College, University of Oxford.
- John K.-H. Quah, 1997. "The Law of Demand when Income Is Price Dependent," Econometrica, Econometric Society, vol. 65(6), pages 1421-1442, November.
- Gael Giraud & Isabelle Maret, 2002.
"Behavioral Heterogeneity in Large Economies,"
Working Papers of BETA
2002-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
When requesting a correction, please mention this item's handle: RePEc:nuf:econwp:0218. 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: (Maxine Collett)
If references are entirely missing, you can add them using this form.