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Separability and AggregationThe Collected Works of W. M. Gorman, Volume I$
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W. M. Gorman, C. Blackorby, and A. F. Shorrocks

Print publication date: 1996

Print ISBN-13: 9780198285212

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198285213.001.0001

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Quasi‐Separable Preferences, Costs, and Technologies

Quasi‐Separable Preferences, Costs, and Technologies

(p.101) 7 Quasi‐Separable Preferences, Costs, and Technologies
Separability and Aggregation

W. M. Gorman (Contributor Webpage)

, C. Blackorby, A. F. Shorrocks
Oxford University Press

This paper is from an unpublished typescript prepared at the University of North Carolina in 1970. It is a thorough analysis of the distance function that Gorman first discovered in ’Consumer budgets and price indices’ (Ch. 5), where it was used to recover the form of the direct preferences from a dual representation. In this paper, it stands on its own and is shown to be the natural dual of the cost or expenditure function; natural in this context means that the distance function has the same properties in quantities as the cost function has in prices.

Keywords:   cost functions, distance functions, expenditure functions, prices, quasi‐separable preferences, separable preferences

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