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Preferences, Separability, and the Patinkin Model

Cliff Lloyd

Journal of Political Economy 1971

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.

DOI
10.1086/259773
Volume
79 (3)
Pages
642-651
Language
en
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BibTeX
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