An individual demand function is said to satisfy the finite basis property when its set of Engel curves has a finite spanning subset. In the present letter we discuss why this property underlies the theory of exact aggregation

This letter explores the robustness (in an approximating sense) of a class of demand systems which have been discussed by Gorman. This class is of fundamental interest because it is known to be the only class of demand systems which permits exact aggregation. We discuss the reasons which...

This letter explores some global properties of the Gorman class of demand functions. We find that generalizing the homothetic preferences case to non-homotheticity gives rise to an unexpected global problem. In particular, interaction of the bounded budget share condition with either Slutsky...

We address two problems in this paper: i) What restrictions, if any, need to be imposed on the vector of aggregates in order that the aggregate demand functional form representation be nontrivial, economically interesting and have the generalized Gorman form as its only solution. ii) What...

In this paper we explore the following fundamental question: Are there reasonable conditions under which the parameters of estimated aggregate demand systems will uniquely identify underlying individual demand systems? In the process of examining this question we show that the conditions which...

This article summarizes some recent research that explores the role of customer satisfaction in the fortunes of retailers. The goal of the research was to layout precisely (mathematically) how productivity, cost and demand are impacted when a retailer changes labor and/or capital expenditures,...

In this short paper we reformulate and extend Sandmo's (3) well known analysis of “capital risk” to include the effects of savings uncertainty on both the savings decision and the labor-leisure decision

This paper analyzes the labor supply decision of a single economic agent within the expected utility framework. Two formulations of the problem are considered: pure income uncertainty and wage rate uncertainty. In each case, the effects on the labor supply decision of changes in both expected...

Social scientists are continually confronted with the problem of formulating models which describe how individuals make choices among alternative courses of action with uncertain consequences.Economists have developed a class of models which seem to deal particularly well with problems of this...