Luxuries are Easier to Postpone: A Proof

Martin Browning; Thomas Crossley

Luxuries are Easier to Postpone: A Proof

Økonomisk Institut

42 Citationer (Scopus)

Abstract

We show that (Marshallian)income elasticities are proportionalto (Frisch) own priceelasticities if all goodsare additively separable. Thisimplies that luxuries arelikely to be easierto postpone. It alsoimplies that preferences over"consumption" are unlikely todisplay a constant elasticityof substitution

Originalsprog	Engelsk
Tidsskrift	Journal of Political Economy
Vol/bind	108
Udgave nummer	5
Sider (fra-til)	1022-1026
ISSN	0022-3808
Status	Udgivet - 2000

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Citationsformater

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T2 - A Proof

AU - Browning, Martin

AU - Crossley, Thomas

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N2 - We show that (Marshallian) income elasticities are proportional to (Frisch) own price elasticities if all goods are additively separable. This implies that luxuries are likely to be easier to postpone. It also implies that preferences over "consumption" are unlikely to display a constant elasticity of substitution

AB - We show that (Marshallian) income elasticities are proportional to (Frisch) own price elasticities if all goods are additively separable. This implies that luxuries are likely to be easier to postpone. It also implies that preferences over "consumption" are unlikely to display a constant elasticity of substitution

M3 - Journal article

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VL - 108

SP - 1022

EP - 1026

JO - Journal of Political Economy

JF - Journal of Political Economy

IS - 5

ER -

Luxuries are Easier to Postpone: A Proof

Abstract

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