On Some Global Properties of Gorman Class Demand Systems
6 Pages Posted: 7 Jun 2011
Date Written: July 30, 1987
This letter explores some global properties of the Gorman class of demand functions. We find that generalizing the homothetic preferences case to non-homotheticity gives rise to an unexpected global problem. In particular, interaction of the bounded budget share condition with either Slutsky symmetry or with homogeneity reduces the set of admissible Gorman class demand functions to but one - the polar form.
Keywords: Gorman class demand systems
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