A new characterization of consumer heterogeneity in a growing economy

Noritaka Maebayashi and Hideki Murahara

MPRA Paper from University Library of Munich, Germany

Abstract: Caselli and Ventura (2000) introduced various sources of consumer heterogeneity, while studying changes in consumption, assets, income distributions, and preferences for public services and focusing on their average values to determine the features of the representative economic behavior. Based on this model, we propose a new approach that features the economic behavior of heterogeneous consumers. We introduce the view of direction vectors representing the principal components derived from the main sources of consumer heterogeneity rather than considering their average values. We expect that our progressive approach will provide us with further insight into the essence of what we have been hitherto considering from an average perspective.

Keywords: consumer heterogeneity; direction vectors to characterize the economy with heterogeneous agents (search for similar items in EconPapers)
JEL-codes: C02 E13 O40 (search for similar items in EconPapers)
Date: 2022-10-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/114887/1/MPRA_paper_114887.pdf original version (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:pra:mprapa:114887

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().