Abstract
In this chapter, some basic concepts of consumer theory are presented (without proof) in order to describe the theoretical background of the Rotterdam model (see Barten and Böhm, 1982 and Deaton and Muellbauer, 1980). In section 3.1, we briefly define the commodity space and the budget set. The utility function and the Marshallian demand will be defined in section 3.2 and the cost function and the Hicksian demand in section 3.3. The Rotterdam model is derived section 3.4 and written in matrix form in section 3.5.
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© 2000 Springer-Verlag Berlin Heidelberg
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Schmolck, B. (2000). Consumer theory and the Rotterdam model. In: Omitted Variable Tests and Dynamic Specification. Lecture Notes in Economics and Mathematical Systems, vol 488. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58324-7_3
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DOI: https://doi.org/10.1007/978-3-642-58324-7_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-67358-3
Online ISBN: 978-3-642-58324-7
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