Exact Aggregation and the Finite Basis Property
International Economic Review, Vol. 29, No. 3, p. 525, 1988
15 Pages Posted: 10 Aug 2011
Date Written: 1988
We address two problems in this paper: i) What restrictions, if any, need to be imposed on the vector of aggregates in order that the aggregate demand functional form representation be nontrivial, economically interesting and have the generalized Gorman form as its only solution. ii) What economic restrictions. if any, does the generalized Gorman form impose on demand functions, both at the individual and aggregate levels.
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