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For example, individual demand can be aggregated to market demand if and only if individual preferences are of the Gorman polar form (or equivalently satisfy linear and parallel Engel curves). Under this condition, even heterogeneous preferences can be represented by a single aggregate agent simply by summing over individual demand to market ...
Homogeneity and heterogeneity; only ' b ' is homogeneous Homogeneity and heterogeneity are concepts relating to the uniformity of a substance, process or image.A homogeneous feature is uniform in composition or character (i.e., color, shape, size, weight, height, distribution, texture, language, income, disease, temperature, radioactivity, architectural design, etc.); one that is heterogeneous ...
Homogeneity can be studied to several degrees of complexity. For example, considerations of homoscedasticity examine how much the variability of data-values changes throughout a dataset. However, questions of homogeneity apply to all aspects of the statistical distributions, including the location parameter
Download as PDF; Printable version; ... move to sidebar hide. From Wikipedia, the free encyclopedia. Redirect page. ... Heterogeneity in economics; Retrieved from ...
Competitive heterogeneity is a concept from strategic management that examines why industries do not converge on one best way of doing things. In the view of strategic management scholars, the microeconomics of production and competition combine to predict that industries will be composed of identical firms offering identical products at identical prices.
A classic example of heteroscedasticity is that of income versus expenditure on meals. A wealthy person may eat inexpensive food sometimes and expensive food at other times. A poor person will almost always eat inexpensive food. Therefore, people with higher incomes exhibit greater variability in expenditures on food.
This occurs, for example, when preferences are Gorman aggregable. A model that contains many different agents whose choices cannot be aggregated in this way is called a heterogeneous agent model. The notion of the representative agent can be traced back to the late 19th century.
For example, the IS model of only the goods market [1]: pp. 250–260 derives the market-clearing (and thus endogenous) level of output depending on the exogenously imposed level of interest rates, since interest rates affect the physical investment component of the demand for goods.