Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77730
Authors: 
Besada, Manuel
García, Javier
Mirás, Miguel
Vázquez, Carmen
Year of Publication: 
2011
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Publisher:] Springer [Place:] Heidelberg [Volume:] 2 [Year:] 2011 [Issue:] 3 [Pages:] 401-421
Abstract: 
The aim of this paper is to explore several features concerning the generalized marginal rate of substitution (GMRS)when the consumers utility maximization problem with several constraints is formulated as a quasi-concave programming problem. We show that a point satisfying the first order sufficient conditions for the consumer's problem minimizes the associated quasi-convex reciprocal cost minimization problems. We define the GMRS between endowments and show how it can be computed using the reciprocal expenditure multipliers. Additionally, GMRS is proved to be a rate of change between different proportion bundles of initial endowments. Finally, conditions are provided to guarantee a decreasing GMRS along a curve of initial endowments while keeping the consumer's utility level constant.
Subjects: 
quasi-concave programming
indirect utility function
marginal rates of substitution · multiple constraint optimization problems
JEL: 
C61
D11
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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