Gorman Revisited: Nonparametric Conditions for Exact Linear Aggregation
Laurens Cherchye (),
Ian Crawford (),
Bram De Rock () and
Working Papers ECARES from ULB -- Universite Libre de Bruxelles
In the tradition of Afriat (1967), Diewert (1973) and Varian (1982), we provide arevealed preference characterisation of exact linear aggregation. This guarantees thataggregate demand can be written as a function of prices and aggregate income alone,while abstracting from income-distributional aspects. We also establish nonparametricconditions for individual consumption to be representable in terms of Gorman PolarForm preferences. Our results are simple and complement those of Gorman (1953,1961). We illustrate the practical usefulness of our results by means of an empiricalapplication to a Spanish balanced microdata panel.
Pages: 22 p.
New Economics Papers: this item is included in nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/2211 ... VERMEULEN-gorman.pdf Full text for the whole work, or for a work part (application/pdf)
Working Paper: Gorman revisited: nonparametric conditions for exact linear aggregation (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/221188
Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/221188
Access Statistics for this paper
More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().