A class of differential demand systems
نویسنده
چکیده
in which the summation is taken over all y1 goods and where wi is the budget share of commodity i, qi is the quantity of good i, pi is the unit price of good i, x is total expenditure, and P is the Divisia price index, implicitly defined as d In P = cj wj.d In pi. The parameter pi is the (constant) marginal budget share of good i; negativity of the substitution effect imposes 7rii < 0. The left-hand side of (1) corresponds to the quantity component of the change in the budget share. The total differential of the budget share wi is given by
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