Classification: D110 Key words: Normalized Quadratic, expenditure function, flexible functional forms, elasticities … functional form for a production or utility function and a cost or expenditure function. Basically, flexible functional forms … cost function C(y,p) in production context or expenditure function C(u,p) in consumer context has the following structure …

This paper re-examines the UK private sector expenditure function invented in the 1970s by the 'New Cambridge' School … private expenditure function with interesting attributes. These include a stable steady-state ratio of financial wealth to …