RECOVERING WEAKLY COMPLEMENTARY PREFERENCES

This paper demonstrates a method for recovering weakly complementary expenditure and indirect utility functions while integrating back from Marshallian demand specifications that do not intrinsically embody weak complementarity. Weak complementarity, of a good with quality provides information about how the constant of integration over price must behave with respect to quality, and this information can be incorporated into the process of recovering preferences. The weakly complementary expenditure and indirect utility functions are recovered for the linear demand specification and for the Stone-Geary utility function with any value of the subsistence parameter. © 1991.