An Extended Linear Expenditure System with Assets

Philip David Adams ()

The Economic Record, 1991, vol. 0, issue 0, pages 109-17

Abstract: In this paper, Lluch's Extended Linear Expenditure System (ELES) is generalized to accommodate the portfolio behavior of an individual when future asset returns are uncertain. Using Merton's continuous-time methodology for modeling individual behavior under uncertainty, a new system, called the Extended Linear Expenditure System with Assets, is derived. This system contains both a modified form of the ELES and a set of asset demand equations. The latter are quite simple expressions representing portfolio behavior in a way that is fully consistent with the Tobin/Markowitz model in a static single-period setting. Copyright 1991 by The Economic Society of Australia.

Date: 1991
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:ecorec:v:0:y:1991:i:0:p:109-17

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0249

Access Statistics for this article

The Economic Record is edited by Paul Miller, Glenn Otto and Martin Richardson

More articles in The Economic Record from The Economic Society of Australia
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().