On constant elasticities of demand

Authors

  • Andrés Vázquez Consejo Superior de Investigaciones Científicas

DOI:

https://doi.org/10.24201/ee.v13i1.240

Keywords:

Slutsky matrix, duality theory, elasticities, demand function

Abstract

While the Slutsky matrix and duality theory have been used to establish that constant elasticity demand functions imply unitary income elasticities, zero cross-price elasticities and own-price elasticities equal to minus one, this note shows that these results can also be straightforwardly derived from the simple assumption that demand functions satisfy the budget constraint with strict equality.

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Published

1998-01-01

How to Cite

Vázquez, A. (1998). On constant elasticities of demand. Estudios Económicos De El Colegio De México, 13(1), 73–79. https://doi.org/10.24201/ee.v13i1.240

Issue

25-vol. 13, no. 1, january-june, 1998

Section

Articles