Questions tagged [linear-expenditure]
3
questions
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1answer
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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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1answer
957 views
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))\...
5
votes
1answer
3k views
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 ...
