SFB 303 Discussion Paper No. A - 589

Author: Hildenbrand, Werner, and Alois Kneip
Title: Behavioral Heterogeneity
Abstract: A notion of ''behavioral heterogeneity'' of a finite population of households is modelled. It is shown that the higher the degree of behavioral heterogeneity the less sensitive depends the aggregate consumption expenditure ratio upon prices.As a consequence, behavioral heterogeneity implies a tendency for the Jacobian of aggregate demand to have a negative dominant diagonal.
Keywords: Aggregation, behavioral heterogeneity, mean demand
JEL-Classification-Number: D11, E10
Creation-Date: March 1999
URL: ../1999/a/bonnsfa589.pdf

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