On the Number and the Composition of Varieties

23 Pages Posted: 16 Jun 2009

See all articles by Yasusada Murata

Yasusada Murata

Nihon University - Advanced Research Institute for the Sciences and Humanities

Date Written: 0000

Abstract

I propose a simple general equilibrium model with nonhomothetic preferences and productivity differences and analyse the number and the composition of varieties in consumption. I obtain the following three results. First, population and labour efficiency have different roles in the income elasticity of demand, thus having different impacts on the number of final goods. Second, given the number of final goods, the composition of varieties is determined by the relative importance of desirability and technological feasibility of each final good. Finally, the equilibrium number and composition of final goods may not necessarily be the same as the optimal ones.

Suggested Citation

Murata, Yasusada, On the Number and the Composition of Varieties (0000). The Economic Journal, Vol. 119, Issue 539, pp. 1065-1087, July 2009. Available at SSRN: https://ssrn.com/abstract=1418181 or http://dx.doi.org/10.1111/j.1468-0297.2009.02264.x

Yasusada Murata (Contact Author)

Nihon University - Advanced Research Institute for the Sciences and Humanities ( email )

Tokyo
Japan

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