Stone–Geary utility function
From Infogalactic: the planetary knowledge core
The Stone–Geary utility function takes the form
where is utility, is consumption of good , and and are parameters.
For , the Stone–Geary function reduces to the generalised Cobb–Douglas function.
The Stone–Geary utility function gives rise to the Linear Expenditure System,[1] in which the demand function equals
where is total expenditure, and is the price of good .
The Stone–Geary utility function was first derived by Roy C. Geary,[2] in a comment on earlier work by Lawrence Klein and Herman Rubin.[3] Richard Stone was the first to estimate the Linear Expenditure System.[4]
References
Further reading
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