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Additive Preferences

H. S. Houthakker
Econometrica
Vol. 28, No. 2 (Apr., 1960), pp. 244-257
Published by: The Econometric Society
DOI: 10.2307/1907719
Stable URL: http://www.jstor.org/stable/1907719
Page Count: 14
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Additive Preferences
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Abstract

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.

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