Consistent aggregation of demand functions over restricted income distributions
type: Item
instance of: scholarly article
title: Consistent aggregation of demand functions over restricted income distributions
zbMATH Open document ID: 0621.90006
DOI: 10.1007/BF01237551
author: B. George
published in: Journal of Economics
publication date: 1987-01-01T00:00:00Z
review text: This paper aims to determine the conditions under which the demands for goods of individual consumers, as functions of prices and individual income, may be summed and aggregatedly represented as a function of prices and community income. With the possible distribution of individual income restricted to be in some set, the economic problem posed reduces to solving Cauchy- and Pexider-type functional equations on restricted domains. The techniques of Zdun, and Daróczy and Losconzi are used to solve the functional equations. The main conclusion is that aggregation of demand is possible if and only if the individual demand functions are essentially linear in income. This rather confining result prompts the formulation of the problem of approximate aggregation of demand functions, the resolution of which would involve determining the stability of functional equations over restricted domains.
Mathematics Subject Classification ID: 91B10
Mathematics Subject Classification ID: 62P20
zbMATH DE Number: 4008053
zbMATH Keywords: Pexider-type functional equations
zbMATH Keywords: aggregation of demand
MaRDI profile type: Publication
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description: scientific article; zbMATH DE number 4008053