Abstract

Inverse demand functions are often useful econometric representations of consumer behavior. This paper establishes some theoretical properties of inverse demands which aid their interpretation and facilitate calculations related to them. We introduce the notion of scale elasticity which is shown to play for inverse demands much the same role that income elasticity does for direct demands. It is used in a decomposition of Antonelli effects which is analogous to the Slutsky equation for direct demands.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.