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akhilrao.bsky.social
•
1 day ago
I'm looking for a class of utility function such that the share of wealth spent on a good is constant. What's this called? #econsky
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akhilrao.bsky.social
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1 day ago
Is this just Cobb Douglas or is there something more general? Homothetic?
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interfluidity.com
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1 day ago
holding prices constant and only letting income vary, i think homothetic works.
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kjhealy.co
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1 day ago
Isn’t that just a Cobb-Douglas utility function?
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akhilrao.bsky.social
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1 day ago
Yeah, Cobb Douglas satisfies it, wondering if there's more. I think it needs to be homothetic with unit income elasticity...
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akhilrao.bsky.social
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1 day ago
At a minimum I suppose there's any monotone scaling of CD
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