The empirical classification of leisure activities into luxuries, necessities, or inferior activities is useful for predicting the impact of economic development or life-cycle variations in wages on the organization of people’s leisure. We take a step in that direction. We present theoretical...

We provide a simple necessary and sufficient condition for when a multiproduct demand system can be generated from a discrete choice model with unit demands.

Simple general equilibrium (exchange) models of intra-EU trade generate equalized relative prices of consumer tradables. Simultaneously, more dispersed domestic relative prices of consumer non-tradables are generated. Consequently, the purchasing power parity/exchange rate ratios may move...