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A NOTE ON IMPOSING LOCAL CURVATURE IN GENERALIZED LEONTIEF MODELS
APOSTOLOS SERLETIS, ASGHAR SHAHMORADI
Journal:

Macroeconomic Dynamics / Volume 11 / Issue 2 / April 2007

Published online by Cambridge University Press:

19 March 2007, pp. 290-294
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In this paper, we build on Ryan and Wales (1998) and Moschini (1999) and impose curvature conditions locally on the generalized Leontief model, introduced by Diewert (1974). In doing so, we exploit the Hessian matrix of second order derivatives of the reciprocal indirect utility function, unlike Ryan and Wales (1998) and Moschini (1999), who exploit the Slutsky matrix.

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A NOTE ON IMPOSING LOCAL CURVATURE IN GENERALIZED LEONTIEF MODELS