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  • Overview of Duality: Mikro 1 CAU Kiel WS 2001/02 Raff/Willmann

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    Fara Wulan
    8 vistas2 páginas
    This document provides an overview of duality in economics. It outlines several key concepts: - Marshallian demand which shows demand as a function of prices and income. - Hicksian demand which shows demand as a function of prices and utility. - Roy's identity which relates Marshallian and Hicksian demand. - Shephard's lemma which derives the expenditure function from the indirect utility function. It provides a diagram showing the relationships between these concepts and how to convert between different representations using techniques like plugging functions into objectives or solving for variables.

    Descripción original:

    microeconomics duality graph marshallian and hicksian demand

    Título original

    Duality Graph

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    This document provides an overview of duality in economics. It outlines several key concepts: - Marshallian demand which shows demand as a function of prices and income. - Hicksian demand which shows demand as a function of prices and utility. - Roy's identity which relates Marshallian and Hicksian demand. - Shephard's lemma which derives the expenditure function from the indirect utility function. It provides a diagram showing the relationships between these concepts and how to convert between different representations using techniques like plugging functions into objectives or solving for variables.

    Copyright:

    © All Rights Reserved
    Descargue como PDF, TXT o lea en línea desde Scribd
    Marcar por contenido inapropiado
    8 vistas2 páginas

    Overview of Duality: Mikro 1 CAU Kiel WS 2001/02 Raff/Willmann

    Cargado por

    Fara Wulan
    This document provides an overview of duality in economics. It outlines several key concepts: - Marshallian demand which shows demand as a function of prices and income. - Hicksian demand which shows demand as a function of prices and utility. - Roy's identity which relates Marshallian and Hicksian demand. - Shephard's lemma which derives the expenditure function from the indirect utility function. It provides a diagram showing the relationships between these concepts and how to convert between different representations using techniques like plugging functions into objectives or solving for variables.

    Copyright:

    © All Rights Reserved
    Descargue como PDF, TXT o lea en línea desde Scribd
    Marcar por contenido inapropiado
    de 2

    Mikro 1

    WS 2001/02

    CAU Kiel
    Raff/Willmann

    Overview of Duality

    U max
    s.t. BC

    p1x1+p2x2 min
    s.t. u=U(x1,x2)

    Marshallian
    Di(p1, p2, I)

    Hicksian
    DiC(p1, p2, U)

    Roys
    identity

    down: plug into


    the objective fct

    ind. U fct.
    V(p1, p2, I)

    Shephards
    Lemma

    Expd. fct.
    E(p1, p2, U)

    right to left and back:


    plug in expd. fct. for I or
    ind. U fct. for U to get from
    Di to DiC and vice versa.
    To move between V and E
    simply solve for I and U
    respectively.

    page 2/2

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