Not So Demanding: Demand Structure and Firm Behavior

J. Peter Neary and Mrázová, Monika
Authors registered in the RePEc Author Service: Monika Mrazova ()

No 11119, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We show that any well-behaved demand function can be represented by its demand manifold, a smooth curve which relates the elasticity and convexity of demand. This manifold is a sufficient statistic for many comparative statics questions; leads naturally to characterizations of new families of demand functions which nest most of those used in applied economics; and connects assumptions about demand structure with firm behavior and economic performance. In particular, we show that the demand manifold leads to new insights about industry adjustment with heterogeneous firms, and provides a quantitative framework for measuring the effects of globalization.

Keywords: Heterogeneous firms; Pass-through; Quantifying responses to trade liberalization; Super- and sub-convexity; Supermodularity (search for similar items in EconPapers)
JEL-codes: F12 F15 F23 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://cepr.org/publications/DP11119 (application/pdf)

Related works:
Journal Article: Not So Demanding: Demand Structure and Firm Behavior (2017)
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:cpr:ceprdp:11119

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP11119

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().