Factor-Supply Responses and the Gross-Substitute System

  • Tapan Biswas

Abstract

Although the inputs are not normally gross-substitutes in their demand, the Jacobian matrix
of all excess demand functions, corresponding to both outputs and inputs, may satisfy the gross substitute requirements if, apart from the final goods being gross-substitutes in their demand, all
inputs are substitutes in supply.
Published
2012-05-22
Section
Articles