Summary.
It is shown that the property that the equilibrium manifold keeps the memory of the individual demand functions holds true if every individual demand function satisfies the following three properties: 1) It is a function of commodity prices and of consumer’s income; 2) Consumption belongs to the nonnegative orthant of the commodity space; 3) Walras law. Neither differentiability nor continuity are necessary. In addition, the demand functions do not have to be utility maximizing subject to budget constraints.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Corresponding author
Additional information
Received: 2 September 2003, Revised: 26 January 2004,
JEL Classification Numbers:
D50, D51.
A preliminary version of this paper was released in October 1999 under the title “Deriving individual demand functions from the equilibrium manifold.” I wish to thank an anonymous referee for thoughtful comments.
Rights and permissions
About this article
Cite this article
Balasko, Y. The equilibrium manifold keeps the memory of individual demand functions. Economic Theory 24, 493–501 (2004). https://doi.org/10.1007/s00199-004-0473-9
Issue Date:
DOI: https://doi.org/10.1007/s00199-004-0473-9