Define exi and eyi to be income elasticities for goods x
Elasticity/Engel Aggregation:
Define ex,I and ey,I to be income elasticities for goods x and y. Define sx and sy to be income shares for x and y.
Show that Engel aggregation holds: ex,ISx + ey,ISy = 1.
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elasticityengel aggregationdefine exi and eyi to be income elasticities for goods x and y define sx and sy to be income
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