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Decisions in Economics and Finance

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24-08-2020

The characterization of demand and excess demand functions, revisited

Author: Marwan Aloqeili

Published in: Decisions in Economics and Finance | Issue 2/2020

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Abstract

In this note, the characterization problem of individual demand and excess demand functions is revisited. It is assumed that the individual’s income is price dependent. When the income function is homogeneous of degree one, we show that similar conditions characterize both demand and excess demand functions.

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This will be an exception for our convention to denote the Hessian of u by \(u_{xx}\) in order to simplify notation because of its repeated use.

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Title: The characterization of demand and excess demand functions, revisited
Author: Marwan Aloqeili
Publication date: 24-08-2020
Publisher: Springer International Publishing
Published in: Decisions in Economics and Finance / Issue 2/2020
Print ISSN: 1593-8883
Electronic ISSN: 1129-6569
DOI: https://doi.org/10.1007/s10203-020-00303-w

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