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On Behavioral Heterogeneity

  • Werner Hildenbrand
  • Alois Kneip
Chapter
  • 305 Downloads
Part of the Studies in Economic Theory book series (ECON.THEORY, volume 25)

Summary

An index of “behavioral heterogeneity” for every finite population of households is defined. It is shown that the higher the index of behavioral heterogeneity the less sensitive depends the aggregate consumption expenditure ratio upon prices. As a consequence, a high index implies a tendency for the Jacobian of aggregate demand to have a dominant negative diagonal.

Key words

Aggregation Behavioral heterogeneity Mean demand 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Werner Hildenbrand
    • 1
  • Alois Kneip
    • 2
  1. 1.Universität BonnBonnGermany
  2. 2.Universität MainzMainzGermany

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