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The Independence Transformation under Almost Additivity

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Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 25)

Abstract

When the consumer’s tastes are close to preference independence, each transformed good is uniquely associated with one observed good. The off-diagonal elements of the composition matrix of the transformation are equal apart from sign and are inversely proportional to the difference between the income elasticities of the corresponding observed goods.

Keywords

Marginal Utility Income Elasticity Composition Matrix Economic Letter Budget Share 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Springer Science+Business Media Dordrecht 1992

Authors and Affiliations

  1. 1.University of ChicagoChicagoUSA

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