Questions tagged [linear-expenditure-system]

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Understanding the linear expenditure system

I've been reading up on the uses of the linear expenditure system via a the papers which apply them. One paper which gives a good introduction to the topic in a paper called: Modeling household ...
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Convexity of Walrasian Demand

A follow up to my previous question: Given $u(x) = (x_1-b_1)^\alpha (x_2-b_2)^\beta(x_3-b_3)^\gamma$ and ending up with from a maximization that $$x(p,w) = (b_1, b_2, b_3) + (w - (b \cdot p))\...
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Linear Expenditure System of Demands, Derivation Help

This problem I am working on comes out of--surprise--the Mas-Colell book for graduate micro (3.D.6). I think I have correctly used the FOC of the Lagrangian of the utility maximization problem to ...