Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 1977, Volume 45, Issue 5

Revealed Preference and Aggregation<1173:RPAA>2.0.CO;2-Q
p. 1173-1182

Wayne J. Shafer

This paper studies conditions under which aggregate demand behavior will satisfy the usual revealed preference axioms. Assuming a fixed distribution of income and the hypothesis that individual demand is homogeneous in income, it is shown that the weak axiom of revealed preference or the congruence axiom will hold in the aggregate if each individual demand satisfies the corresponding axiom. it is also shown that the hypothesis of homogeneity in income is not necessary for the weak axiom to hold in the aggregate.

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