Economics at your fingertips  

Money illusion, Gorman and Lau

Scott Colby, Tim Graciano (), Jeffrey LaFrance () and Pope Rulon

MPRA Paper from University Library of Munich, Germany

Abstract: Any demand equation satisfying Lau’s (1982) Fundamental Theorem of Exact Aggregation and is 0° homogeneous in prices and income will have a Gorman (1981) functional form for each income term. This property does not depend on symmetry or adding up. The implications of this result are illustrated by an extensive example.

Keywords: Demand; exact aggregation; functional form; homogeneity (search for similar items in EconPapers)
JEL-codes: D11 D01 (search for similar items in EconPapers)
Date: 2011-08-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

Related works:
Working Paper: MONEY ILLUSION, GORMAN AND LAU (2011) Downloads
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:

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 ().

Page updated 2019-11-04
Handle: RePEc:pra:mprapa:32709