Preferences and Normal Goods: An Easy-to-Check Necessary and Sufficient Condition
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Data di Pubblicazione:
2010
Citazione:
Bilancini, E. e L., Boncinelli. "Preferences and Normal Goods: An Easy-to-CheckNecessary and Sufficient Condition" Working paper, RECENT WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi – Università di Modena e Reggio Emilia, 2010.
Abstract:
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.
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.
Tipologia CRIS:
Working paper
Keywords:
Normal Goods; Bordered Hessian
Elenco autori:
Bilancini, E.; Boncinelli, L.
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