LIU, XIAONAN; LaFrance, Jeffrey T.; Chouinard, Hayley H.; … - Job Market Papers - 2013
We propose a Generalized Quadratic Utility (GQU) model for an incomplete demand system with binding non-negativity constraints which is flexible in income and price effects. The model accounts for zero consumption using choke prices identified by Kuhn-Tucker conditions. The GQU demand system can...