Why Market Imperatives Invigorate Economic Inequality? Cobb-Douglas Utility Remodelled

Robin Maialeh ()

Panoeconomicus, 2019, vol. 66, issue 2, 145-163

Abstract: The aim of the article is to demonstrate on a familiar example of Cobb-Douglas utility function principles of intertemporal resource allocation under general market conditions. The enormous increase of data availability and progress in data analysis in recent decades caused that empirical inequality research has created a robust base of results. On the other hand, researchers face serious interpretation difficulties. Empirical results do not speak for themselves but only through interpretative theory. Hence, the article provides a theoretical scheme which clarifies fundamental inequality-driving forces and which reveals economic inequalities as the intrinsic feature of market economies.Keywords: Cobb-Douglas utility, Economic inequality, Market forces.JEL: D01, D6, D3, D41. Zašto tržišne snage dovode do jačanja ekonomske nejednakosti? Ponovno modeliranje Kob-Daglasove korisnosti Cilj rada je da se na poznatom primeru Kob-Daglasove funkcije korisnosti prikažu principi intertemporalne alokacije resursa u opštim tržišnim uslovima. Značajno povećanje dostupnosti podataka i napredak u analizi podataka u posljednjih nekoliko decenija stvorilo je snažnu bazu rezultata istraživanja empirijske nejednakosti. S druge strane, istraživači se suočavaju sa ozbiljnim poteškoćama prilikom tumačenja. Empirijski rezultati ne govore sami za sebe, već samo kroz interpretativnu teoriju. Stoga se u radu daje teorijska šema koja pojašnjava osnovne pokretačke sile nejednakosti i koja otkriva ekonomsku nejednakost kao suštinsku karakteristiku tržišnih ekonomija. Ključne reči: Kob-Daglasova korisnost, ekonomska nejednakost, tržišne sile.

Keywords: Cobb-Douglas utility; Economic inequality; Market forces (search for similar items in EconPapers)
Date: 2019
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