COMPARATIVE STATICS OF MONEY-GOODS SPECIFICATIONS OF THE UTILITY FUNCTION

Quirino Paris and Michael Caputo

No 11953, Working Papers from University of California, Davis, Department of Agricultural and Resource Economics

Abstract: The introduction of real-cash balances into the neoclassical model of the consumer wrecks havoc, in general, on the empirically observable refutable comparative statics properties of the model. We provide the most general solution of this problem to date by deriving a symmetric and negative semidefinite generalized Slutsky matrix that is empirically observable and which contains all other such comparative statics results as a special case. In addition, we clarify and correct two aspects of Samuelson and Sato's (1984) treatment of this problem.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Pages: 21
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/11953/files/wp01-006.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:ags:ucdavw:11953

DOI: 10.22004/ag.econ.11953

Access Statistics for this paper

More papers in Working Papers from University of California, Davis, Department of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().