We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.

Bilancini, E. e L., Boncinelli. "Preferences and Normal Goods: An Easy-to-CheckNecessary and Sufficient Condition" Working paper, RECENT WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi – Università di Modena e Reggio Emilia, 2010.

Preferences and Normal Goods: An Easy-to-Check Necessary and Sufficient Condition

Bilancini, E.;
2010

Abstract

We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.
2010
Febbraio
Bilancini, E.; Boncinelli, L.
Bilancini, E. e L., Boncinelli. "Preferences and Normal Goods: An Easy-to-CheckNecessary and Sufficient Condition" Working paper, RECENT WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi – Università di Modena e Reggio Emilia, 2010.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1292195
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