Exact aggregation under summability and homogeneity with individually variable prices

Exact aggregation of a system of individual expenditure functions with a single, individually variable price is analyzed. It is shown, under summability and homogeneity, that the individual and aggregate expenditure functions must take one of two specific functional forms.

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Bibliographic Details
Published in:Economics letters 1996-03, Vol.50 (3), p.329-335
Main Authors: Lau, Lawrence J., Wu, Ho-Mou
Format: Article
Language:English
Subjects:
Exact aggregation
Functional form
Homogeneity
Prices
Summability
Variable prices
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Description
Summary:Exact aggregation of a system of individual expenditure functions with a single, individually variable price is analyzed. It is shown, under summability and homogeneity, that the individual and aggregate expenditure functions must take one of two specific functional forms.
ISSN:0165-1765
1873-7374
DOI:10.1016/0165-1765(95)00774-1