The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Sep, 1973, Volume 41, Issue 5
https://doi.org/0012-9682(197309)41:5<913:NDF>2.0.CO;2-7
p. 913-935
Trout Rader
This paper is concerned with showing differentiability and measure theoretic properties on demand functions. The main results are roughly as follows. (i) Demand is differentiable and the Slutsky equation holds for almost all prices if demand satisfies a Lipschitz condition in income (except possibly for a closed cone of prices of measure zero) and utility is concave. This includes the homothetic case which is given special attention in Section 4. (ii) For the Slutsky equation to indicate demand behavior in the large, it is sufficient that along any given indifference curve the ratio of changes in price to changes in quantity be bounded from zero (Section 5). (iii) Even with almost everywhere differentiable demand derived from continuously differentiable utility, most change in demand does not necessarily take place where the Slutsky equation is valid (Section 5). (iv) By way of proof of Theorems 1-3, it is shown that the maximand in a Lagrange problem is differentiable under appropriate conditions on the function being maximized (Theorem 6, Section 3, and Appendix). (v) For preferences as in (ii) and for almost all wealths, equilibrium is locally unique (Section 6).
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
