Preferences and normal goods: An easy-to-check necessary and sufficient condition

Ennio Bilancini and Leonardo Boncinelli

Economics Letters, 2010, vol. 108, issue 1, 13-15

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.

Keywords: Normal; goods; Bordered; Hessian (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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Working Paper: Preferences and Normal Goods: An Easy-to-Check Necessary and Sufficient Condition (2010)
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