6533b7d7fe1ef96bd12678e6

RESEARCH PRODUCT

On Behavioral Heterogeneity

Alois KneipWerner Hildenbrand

subject

Consumption (economics)Labour economicseducation.field_of_studyIndex (economics)Aggregate (data warehouse)PopulationDominant negativeEconomicsEconometricsBehavioral heterogeneityeducationAggregate demand

description

An index of “behavioral heterogeneity” for every finite population of households is defined. It is shown that the higher the index of behavioral heterogeneity the less sensitive depends the aggregate consumption expenditure ratio upon prices. As a consequence, a high index implies a tendency for the Jacobian of aggregate demand to have a dominant negative diagonal.

https://doi.org/10.1007/3-540-28161-4_13