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H. S. Houthakker
Vol. 28, No. 2 (Apr., 1960), pp. 244-257
Published by: The Econometric Society
Stable URL: http://www.jstor.org/stable/1907719
Page Count: 14
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This paper considers the notion of additivity in connection with direct and indirect utility functions. The implications of direct and indirect additivity for demand elasticities are derived. An empirical comparison of a directly additive with an indirectly additive preference system suggests that direct additivity is more realistic.
Econometrica © 1960 The Econometric Society