David Albouy Extensions of Consumer Theory , Taxes in Equilibrium , Welfare , and Optimal Taxation 1 Extensions of Consumer
نویسنده
چکیده
To be more general we call these the uncompensated (or Marshallian or Walrasian) demand functions. These functions are "uncompensated" since price changes will cause utility changes: a situation that does not occur with compensated demand curves. Substituting these solutions back into the utility function, the maximand, we get the actual utility achieved as a function of prices and income. This function is known as the indirect utility function V (w, p,M) ≡ U £xD (w, p,M) , l (w, p,M)¤ (Indirect Utility Function)
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