Slutsky matrix symmetry: A new behavioral condition

The Slutsky matrix function encodes all the information about local variations in demand with respect to small (Slutsky) compensated price changes. When the demand function is the result of utility maximization the Slutsky matrix is symmetric. However, symmetry does not imply rationality. Here, we provide a necessary and sufficient condition for Slutsky symmetry. The new condition requires symmetric attention to compensated price-paths.

MoreLess

Year of publication:	2022
Authors:	Aguiar, Victor H. ; Serrano, Roberto
Publisher:	London (Ontario) : The University of Western Ontario, Department of Economics
Subject:	utility maximization \| Slutsky matrix

More details

Series:	Research Report ; 2022-8
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Research Report
Language:	English
Other identifiers:	1817687298 [GVK] hdl:10419/270410 [Handle] RePEc:uwo:uwowop:20228 [RePEc]
Classification:	C50 - Econometric Modeling. General ; C51 - Model Construction and Estimation ; C52 - Model Evaluation and Testing ; C91 - Laboratory, Individual Behavior
Source:	EconStor

Persistent link: https://www.econbiz.de/10014278357