Individual consumers often are assumed to follow certain relatively simple budgeting rules when making expenditure decisions. For example, how much to save may be decided upon almost separately from decisions on how much to spend on food, services, and other day-to-day consumables. Of course, it is well known that such "decentralized" budgeting decisions can fit well within standard consumer th...

The paper considers a simple model relevant for evaluation and welfare measurement in environmental economics: a household consumes one market good directly and employs another market good and an environmental service as inputs in order to produce its personal environmental quality yielding utility. Starting from the complete conditional demand system for market goods and the production functio...

This article suggests that the Slutsky analysis should be extended so that quality is included in the consumer's utility function as a continuous variable. When quality is included in the consumer's utility function, the consumer is conceived to maximize his/her utility subject to his/her budget constraint by trading off quantity, quality, and price for various products in his market basket. Al...

An extension of the Rotterdam model is developed that makes the model’s income flexibility and marginal propensities to consume varying coefficients. Frisch’s duality relationships that the second partial derivatives of demand with respect to income and prices are independent of the order of differentiation are imposed with the marginal propensities to consume specified as functions of income a...

In this note we identify and clarify a confusion that has arisen in the literature about the exact relationship between unitary and collective models and what enters the Pareto weight and the sharing function. We suggest that we should denote as ‘unitary’ any model that leads to outcomes that satisfy the Slutsky conditions whether or not these outcomes depend on distribution factors. In particu...

The idea that fluctuations can be imparted to a data sequence by passing it through a linear filter has long been familiar to econometricians. It was associated with the discoveries of Slutsky and Yule in the early years of the 20th century. Slutsky (1927, 1937) applied a moving-average filter to random numbers drawn from a public lottery to produce a sequence that had the characteristics of a ...