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Q: Slutsky Equation/ Utility max ( No Answer,   0 Comments )
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Subject: Slutsky Equation/ Utility max
Category: Business and Money > Economics
Asked by: dime365-ga
List Price: $15.00
Posted: 26 Feb 2004 13:23 PST
Expires: 07 Mar 2004 08:23 PST
Question ID: 311139
Consider the problem of maximizing the utility function u = f(c) +
g(s) subject to the budget constraint pc+s = y, where c is consumption
and s is savings.  Derive and interpret the Slutsky equations and
explain what happens if g??(s) = 0.

(I was trying to do this myself, and i saw in the textbook they used
matricies, i would like to it explained that way if possible!)

thanks !
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