Review of Economic Studies Vol. 56 No. 4 1989

The Weak Axiom of Revealed Preference in a Productive Economy

B. Grodal¹; W. Hildenbrand²

¹ University of Copenhagen · ² University of Bonn

Abstract

We consider an economy with pure factors of production, private ownership of endowments and constant returns to scale in production. Typically in such an economy, the weak axiom of revealed preference for market demand does not hold. The main reason for this is that the income distribution in such a private ownership economy depends too sensitively on the price system.

DOI

10.2307/2297506

Volume

56

Issue

4

Pages

635

Sources

bibtex:phds-export.bib openalex crossref

Cite

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