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Preferences and normal goods: An easy-to-check necessary and sufficient condition
Economics Letters (2010)
  • Leonardo Boncinelli, University of Siena
  • Ennio Bilancini, University of Modena and Reggio Emilia
Abstract
We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.
Keywords
  • Normal goods,
  • Bordered Hessian
Disciplines
Publication Date
2010
Citation Information
Leonardo Boncinelli and Ennio Bilancini. "Preferences and normal goods: An easy-to-check necessary and sufficient condition" Economics Letters Vol. 108 Iss. 1 (2010)
Available at: http://works.bepress.com/leonardo_boncinelli/5/