Rubinstein2005-page93

Rubinstein2005-page93 - lecture. Specically, the concept of...

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October 21, 2005 12:18 master Sheet number 91 Page number 75 Choice over Budget Sets and the Dual Problem 75 Proof: Since ph ( p , u ) ph ( p , u ) for all price vectors p , the hyperplane H lies on one side of the graph of the function e = ph ( p , u ) and intersects the graph at the point ( p , e ( p , u )) . Bibliographic Notes Recommended readings : Kreps 1990, 45–63; MWG, chapter 2, E–F; 3, D–G, I–J. Roy and Hicks are the sources for most of the material in this
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Unformatted text preview: lecture. Specically, the concept of the indirect utility function is due to Roy (1942); the concept of the expenditure function is due to Hicks (1946); and the concepts of consumer surplus used in Problem 6 are due to Hicks (1939). See also McKenzie (1957). For a full representation of the duality idea, see, for example, Varian (1984) and Diewert (1982)....
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.

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