Abstract
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
Original language | English |
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Journal | Journal of Political Economy |
Volume | 108 |
Issue number | 5 |
Pages (from-to) | 1022-1026 |
ISSN | 0022-3808 |
Publication status | Published - 2000 |