Income distribution, price elasticity and the 'Robinson Effect' - 2002

Corrado Benassi , Alessandra Chirco Full Version (PDF)
(Quaderni del Dipartimento di Scienze Economiche e Matematico-Statistiche dell'Università del Salento - Collana di Economia, 35/17 / 2002)
In The Economics of Imperfect Competition, Joan Robinson argued that an increase of the consumers' incomes should make demand less elastic - which, though reasonable about individual demand as an assumption on preferences, suggests a role for income distribution as far as market demand is concerned. We model increases in aggregate income as first-order stochastic dominance shifts of the income distribution, and use Esteban's (1986) income share elasticity to provide sufficient conditions on income distribution that support the `Robinson effect' - i.e., such that a negative (positive) relationship between indivual income and price elasticity translates into a negative (positive) relationship between mean income and market demand elasticity. The paper also provides a framework to study the effects of distributive shocks on the price elasticity of market demand.

Table of Contents


Introduction     PDF
Corrado Benassi , Alessandra Chirco 2-3

Income distribution and demand elasticity     PDF
Corrado Benassi , Alessandra Chirco 3-6

First order stochastic dominance     PDF
Corrado Benassi , Alessandra Chirco 6-10

Concluding remarks     PDF
Corrado Benassi , Alessandra Chirco 10-10

Bibliography     PDF
10-11

Appendix     PDF
12-13


Questo sito utilizza un cookie tecnico per consentire la corretta navigazione. Se vuoi saperne di più consulta l'informativa estesa.

مبلمان اداریصندلی مدیریتیصندلی اداریمیز اداریوبلاگدهیفروشگاه اینترنتیگن لاغریشکم بند لاغریآگهی استخدامآگهی رایگانتبلیغات کلیکیآموزش زبان انگلیسیپاراگلایدرساخت وبلاگ


Creative Commons License
This work is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Italia License.