Not So Demanding: Demand Structure and Firm Behavior

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 12
Pages: 3835-74

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that any well-behaved demand function can be represented by its "demand manifold," a smooth curve that relates the elasticity and convexity of demand. This manifold is a sufficient statistic for many comparative statics questions; leads naturally to characterizations of new families of demand functions that nest most of those used in applied economics; and connects assumptions about demand structure with firm behavior and economic performance. In particular, the demand manifold leads to new insights about industry adjustment with heterogeneous firms, and can be empirically estimated to provide a quantitative framework for measuring the effects of globalization.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:12:p:3835-74
Journal Field
General
Author Count
2
Added to Database
2026-01-26