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: Apr, 1960, Volume 28, Issue 2

Additive Preferences<244:AP>2.0.CO;2-K
p. 244-257

H. S. Houthakker

This paper considers the notion of additivity in connection with direct and indirect utility functions. The implications of direct and indirect additivity for demand elasticities are derived. An empirical comparison of a directly additive with an indirectly additive preference system suggests that direct additivity is more realistic.

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