Showing papers by "Eliyathamby A. Selvanathan published in 1995"
TL;DR: In this paper, the authors set out the theory of the utility-maximizing consumer and the derivation of the demand equations, including the direct specification of the functional form of demand equations.
Abstract: The demand function for a single commodity explains how changes in income and the prices of all goods affect the quantity consumed of that commodity. The objective of consumption theory is to derive testable hypotheses about the demand functions. These hypotheses take the form of theoretical restrictions on the demand functions, for example, demand homogeneity, Slutsky symmetry, etc. These restrictions come from the utility-maximizing theory of consumer behaviour. Consequently, the objective of this chapter is to set out the theory of the utility-maximizing consumer and the derivation of the demand equations. There are a number of ways of deriving demand equations, including (i) the direct specification of the functional form of the demand equations; (ii) the specification of the direct utility function; (iii) the specification of the indirect utility function; (iv) the specification of the cost function; and (v) the application of the differential approach.
12 citations
TL;DR: In this article, a comparative statics analysis of advertising and results on separability of the consumer's utility function in the presence of advertising is presented. But this analysis is exclusively theoretical and is restricted to U.K. alcohol data.
Abstract: In Chapters 1 to 6 we followed the traditional approach to consumption theory to analyse the demand for a commodity in terms of the consumer’s income and prices. This chapter extends the differential approach to consumption theory (see Section 1.10) to analyse the effects of advertising. We give a comparative statics analysis of advertising and results on separability of the consumer’s utility function in the presence of advertising. This chapter is exclusively theoretical. In Chapter 8 we apply this theoretical framework to U.K. alcohol data.
2 citations
TL;DR: In this paper, the authors introduce a number of new data-analytic techniques which can be used in consumption economics and apply them before estimating demand equations to obtain a general feel for the data and provide summary measures of the data.
Abstract: This chapter introduces a number of new data-analytic techniques which can be used in consumption economics. These techniques are useful to apply before estimating demand equations to obtain a general feel for the data and provide summary measures of the data and informal estimates of key demand parameters. The Demand Analysis Package DAP (S. Selvanathan et al., 1989) implements many of these techniques in a convenient manner.
1 citations