Abstract
This paper introduces a generalisation of Roy's Identity and Shephard's Lemma which is applicable where the resource constraining expenditure level of a consumer's utility maximisation problem is not observable but is replaced by some observable proxy variable such as conditional expenditure. Implications for testing for Slutsky symmetry and separability are explored.
Original language | English |
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Pages (from-to) | 79-82 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 44 |
Issue number | 1-2 |
DOIs | |
Publication status | Published - 1994 |