The conditions under which aggregate CES demand behavior is consistent with polytomous choice by micro demanders are explored. Several special cases are treated in which either the relative efficiency or the relative input price is assumed to vary randomly over the micro units. In each case it is shown that the random variable must have either a log-logistic (Burr) distribution function or a generalization thereof if the aggregate and the micro behavior are to be consistent.
MLA
Lawrence, Anthony G., and Richard J. McDonald. “Aggregate CES Input Demand with Polytomous Micro Demand.” Econometrica, vol. 46, .no 2, Econometric Society, 1978, pp. 365-378, https://www.jstor.org/stable/1913906
Chicago
Lawrence, Anthony G., and Richard J. McDonald. “Aggregate CES Input Demand with Polytomous Micro Demand.” Econometrica, 46, .no 2, (Econometric Society: 1978), 365-378. https://www.jstor.org/stable/1913906
APA
Lawrence, A. G., & McDonald, R. J. (1978). Aggregate CES Input Demand with Polytomous Micro Demand. Econometrica, 46(2), 365-378. https://www.jstor.org/stable/1913906
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.