Aggregation, Consumption and Trade: Essays in Honor of H.S. by Louis Philips, Lester D. Taylor (auth.), Louis Phlips,

By Louis Philips, Lester D. Taylor (auth.), Louis Phlips, Lester D. Taylor (eds.)

During this testomony to the celebrated profession of H.S. Houthakker a few Professor Houthakker's buddies, former colleagues and previous scholars provide essays which construct upon and expand his many contributions to economics in aggregation, intake, development and alternate. one of the exotic individuals are Paul Samuelson, Werner Hildenbrand, John Muellbauer and Lester Telser. The e-book additionally comprises 4 formerly unpublished papers and notes via its distinct dedicatee.

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Extra info for Aggregation, Consumption and Trade: Essays in Honor of H.S. Houthakker

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To study the impact of interaction, one deviation from overall preference independence has been allowed. The consequences for the demand responses with this deviation have been compared with those under preference independence. Whether the deviation reflects complementarity between two goods or substitution depends on the sign of the relevant Allais coefficient. Using a single deviation only is no doubt not realistic. It is more an analytical device to come to clear-cut statements. It is believed that empirically more interesting widely spread interactions will not change the qualitative conclusions.

We concentrated the analysis in this paper on the most delicate matrix A. This is justified if the cross-section demand function satisfies the Weak Axiom of Revealed Preference. In order to analyse the symmetric matrix A + AT = B(f,p), it is crucial to have a precise knowledge of the shape of the various cross-section Engel curves. We formalized the common shape of the cross-section Engel curves by considering "base functions" which generate these Engel curves. For every choice of base functions, the desired properties of the matrix B(f,p) depend only on the expenditure distribution p, since it is sufficient to consider the matrix B(b,p).

D. Taylor (1st edition 1966, enlarged edition 1970), Consumer Demand in the United States, Harvard University Press. S. , Mi1gate, M. and P. ), The New Palgrave, Vol. 2, Macmillan Press, London, pp. 142 - 143. TESTS OF DYNAMIC SPECIFICATION AND HOMOGENEITY IN A DEMAND SYSTEM' JOHN MUELLBAUER PANOS PASHARDES Nuffield College Institute for Fiscal Studies Oxford University Oxford OXl lNF England ABSTRACT. Two common findings in empirical analyses of static demand systems are a rejection of the homogeneity postulate together with significant positive serial correlation in the residuals.

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