Main Forms of Utility Functions

Abstract

This chapter has been divided into three big sections in which we present the main functional forms of the utility functions: Cobb-Douglas, CES and quasi-linear. Each of these functional forms, and therefore, each section, has been developed according to the exposure in the previous chapter. Thus, firstly, we obtain the Marshallian and Hicksian demand functions in every functional specification, to follow with the indirect and cost utility functions. Moreover, in the Cobb-Douglas functional form, we obtain expenditure-share functions, Engel curves and elasticities. In the CES functional form, we go even further and prove CES demand system restrictions. And finally, in the quasi-linear functional form, a similar exposure to that developed for the CES is presented.KeywordsUtility FunctionIncome ElasticityIndifference CurveExpenditure FunctionIndirect Utility FunctionThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.