On the Construction of Utility Functions Which Correspond to Homogeneous Demand Systems

1984 ◽  
pp. 75-81
Author(s):  
Diethard Pallaschke
Keyword(s):  
Utility Functions ◽  
Demand Systems

A Theory of Serial Correlation of Stochastic Taste Changers in Direct Utility Functions

1985 ◽  
Vol 1 (2) ◽  
pp. 192-210 ◽  
Author(s):  
Robert L. Basmann
Keyword(s):  
Maximum Likelihood ◽  
Serial Correlation ◽  
Correlation Coefficients ◽  
Utility Functions ◽  
Covariance Matrices ◽  
Demand Systems ◽  
Random Disturbance ◽  
Estimation Of Parameters ◽  
Stochastic Disturbance ◽  
Random Disturbances

Methods of maximum-likelihood search (eg., Hildreth-Lu) for single equations models with autocorrelated disturbances are not easily extended to the multi-equation systems encountered in econometric studies of consumer demand. The obstacle is the large dimension of the space of independent serial correlation coefficients to be partitioned and searched. This paper treats stochastic disturbance vectors in demand/expenditure systems as functions of random disturbances in consumer utility functions. It specifies marginal utilities to be products of a systematic function and a nonnegative random disturbance. Under this specification, three hypotheses that readily come to mind in the context of consumer theory drastically reduce the number of independent elements of serial covariance matrices. This in turn makes practicable the extension of maximum-likelihood search methods in the estimation of parameters of large demand systems.

A Model for Applying Information and Utility Functions

1963 ◽  
Vol 30 (3) ◽  
pp. 267-273 ◽  
Author(s):  
David Harrah
Keyword(s):  
Utility Functions
Sign in / Sign up

Export Citation Format

Share Document