search query: @author Quah, J. K-H. / total: 1
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| Author: | Quah, J. K-H. |
| Title: | The law of demand when income is price dependent |
| Journal: | Econometrica
1997 : NOV, VOL. 65:6, p. 1421-1442 |
| Index terms: | DEMAND EXCHANGE EQUILIBRIUM PRODUCTION INCOMES PRICE LEVEL |
| Language: | eng |
| Abstract: | This paper identifies some plausible assumptions on the distribution of characteristics among agents that will guarantee that an exchange or production economy has a unique and stable equilibrium price. The conditions involve the way preferences are distributed. The definition of heterogeneity used is similar to Grandmont (1992) but is applied to homothetic transformations as introduced in Jerison (1982) and Grandmont (1987) and allows for the possibility of atoms. Another condition is that the distributions of preferences and income are independent. The result guarantees the uniqueness of the price equilibrium and its stability under the Walras' tatonnement in exchange and production economies. |
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