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Building Gorman's Nest AgEcon
LaFrance, Jeffrey T.; Beatty, Timothy K.M.; Pope, Rulon D..
Gorman Engel curves are extended to incomplete systems. The roles of Slutsky symmetry and homogeneity/adding up are isolated in the rank and functional form restrictions for Gorman systems. Symmetry determines the rank condition. The maximum rank is three for incomplete and complete systems. Homogeneity/adding up determines the functional form restrictions in complete systems. There is no restriction on functional form in an incomplete system. Every full rank and minimal deficit reduced rank Gorman system has a representation as a polynomial in a single function of income. This generates a complete taxonomy of indirect preferences for Gorman systems. Using this taxonomy, we develop models of incomplete Gorman systems that nest rank and functional form and...
Tipo: Working or Discussion Paper Palavras-chave: Aggregation; Functional form; Gorman Engel curves; Incomplete demand systems; Rank; Weak integrability; Demand and Price Analysis; D12; E21.
Ano: 2004 URL: http://purl.umn.edu/25027
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Aggregation Theory for Incomplete Systems AgEcon
LaFrance, Jeffrey T.; Beatty, Timothy K.M.; Pope, Rulon D..
Gorman's theory of demand is extended comprehensively to incomplete systems. The incomplete systems approach dramatically increases this class of models. The separate roles of symmetry and adding up are identified in the rank and the functional form of this class of models. We show that symmetry determines rank and the maximum rank is three. We show that adding up and 0o homogeneity determines the functional form and there is no functional form restriction for an incomplete system. We prove that every full rank system and reduced rank systems with a minimal level of degeneracy can be written as a polynomial in a single function of income. A complete set of closed form solutions for the indirect objective functions of this class of models is derived. A...
Tipo: Working or Discussion Paper Palavras-chave: Aggregation; Rank; Functional form; Integrability; Incomplete systems; Weak integrability; Demand and Price Analysis; D12; E21.
Ano: 2005 URL: http://purl.umn.edu/25033
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