Approximating compensated income from ordinary demand functions

This paper proposes a REversible Second- ORder Taylor (RESORT) approximation to compensated income from ordinary demand functions. RESORT yields the Malmquist-Vartia (M-V) algorithm as a first-order case. Using the Slutsky equation, RESORT obtains the substitution matrix and checks it for symmetry a...

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Bibliographic Details
Published inEconomics letters Vol. 55; no. 2; pp. 191 - 201
Main Authors Dumagan, Jesus C., Mount, Timothy D.
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 01.01.1997
Elsevier
North Holland
Subjects
Compensated income
Makroökonomische Konsumfunktion
Ordinary demand functions
Schätztheorie
Theorie
Ordinary demand functions
Compensated income
C43
Online AccessGet full text
ISSN0165-1765
1873-7374
DOI10.1016/S0165-1765(97)00067-0

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Summary:This paper proposes a REversible Second- ORder Taylor (RESORT) approximation to compensated income from ordinary demand functions. RESORT yields the Malmquist-Vartia (M-V) algorithm as a first-order case. Using the Slutsky equation, RESORT obtains the substitution matrix and checks it for symmetry and negative semi-definiteness to validate compensated income. This validation procedure is an improvement over M-V.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
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content type line 14
ISSN:0165-1765
1873-7374
DOI:10.1016/S0165-1765(97)00067-0