Comparative Statics for Utility Maximization Models with Nonlinear Budget Constraints

Sören Blomquist

International Economic Review, 1989, vol. 30, issue 2, 275-96

Abstract: This paper investigates the properties of demand functions generated by nonlinear budget constraints, and relates them to those of demand functions generated by linear budget constraints. The analysis shows that the properties of "nonlinear" and "linear" demand functions in some respects are similar, but in other respects differ substantially. The study gives conditions under which properties of the "linear" demand functions carry over to the "nonlinear" ones. The implications for the "nonlinear" demand functions of various separability assumptions are also studied. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1989
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