On Mutually Exclusive and Collectively Exhaustive Properties of Demand Functions

well-known properties associated with demand functions. These eight properties (defined in Section I below) are homogeneity, two forms of additivity, negative semi-definiteness of the substitution matrix, and four forms of symmetry or integrability. Six of these properties can be derived both from the budgetconstrained utility-maximizing approach and from the revealed preference approach to demand theory, and they include the central results that have been obtained from demand theory (see the books by Katzner, 1970; Phlips, 1974; and Theil, 1976). The other two properties, namely a strong form of symmetry or and a weak form of additivity, are compatible with demand theory. Nothing more need to be said here about the four familiar properties, homogeneity, additivity, symmetry, and negative semi-definiteness of the substitution matrix. But a word needs to be said about the other four properties that we include in this study, namely integrability of the direct demand functions, mathematical of the indirect demand functions, strong or symmetry, and weak additivity

Econometrics · Economics · Mathematical economics · Microeconomics · Economic theories and models · Economics of Agriculture and Food Markets · Gender, Labor, and Family Dynamics

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