The Generalized Fechner-Thurstone direct utility function and some of its uses / R.L. Basmann [and others]
In this book the foundations and applicability of the Generalized Fechner-Thurstone Utility Function are laid out. It is shown how by removing the constraint of fixed preferences in the neoclassical consumer theory, utility theory can be used to develop non-parametric indices along with elasticities...
Saved in:
| Online Access: |
Full Text (via Springer) |
|---|---|
| Other Authors: | |
| Format: | eBook |
| Language: | English |
| Published: |
New York :
Springer-Verlag,
©1988.
|
| Series: | Lecture notes in economics and mathematical systems ;
316. |
| Subjects: |
| Summary: | In this book the foundations and applicability of the Generalized Fechner-Thurstone Utility Function are laid out. It is shown how by removing the constraint of fixed preferences in the neoclassical consumer theory, utility theory can be used to develop non-parametric indices along with elasticities of the marginal rates of substitutions. It is also shown that whereas the existence of a fixed preference utility function is not always guaranteed for different demand functions, there will always exist at least one Generalized Fechner-Thurstone Direct Utility Function. Furthermore, analysis using the Fechner-Thurstone Direct Utility Function is clear and simple and does not rely on ad hoc Taylor expansions. The construction of different true-cost-of-living indices, the comparison of North American consumers, and a habit formation model are developed to show the usefulness of the Generalized Fechner-Thurstone Direct Utility Function. |
|---|---|
| Physical Description: | 1 online resource (viii, 159 pages) |
| Bibliography: | Includes bibliographical references (pages 139-153) |
| ISBN: | 9781468494013 1468494015 |
| Source of Description, Etc. Note: | Print version record. |