Title of article :
Possible convexity of the indirect utility function due to nonlinear budget constraints
Author/Authors :
Robert F. Bordley، نويسنده , , Robert F. ، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 1995
Abstract :
A concave utility function coupled with a nonlinear budget constraint can lead to a convex indirect utility function given sufficient complementarity between products. Hence, the principle of diminishing marginal returns to income need not hold.
Keywords :
Concavity: Budget constraint , Indirect utility , Complementarity , Time-preference
Journal title :
Economics Letters
Journal title :
Economics Letters