To make high-quality research more accessible and easier to explore.

Fields:
2 results ✕ Clear filters

Preferences, Separability, and the Patinkin Model

Journal of Political Economy 1971 79(3), 642-651
It has been shown that, in the Patinkin model--where real balances appear in the utility function--the traditional Slutsky results are lost. Here, it is argued that work by Baumol, Tobin, Patinkin, and others implies that the utility function is separable in a specific way. It is then shown that, if the utility function is separable in that way, then the traditional Slutsky results are reinstated.