個 體 經 濟 學 一

Microeconomics (I)

Ch 5 More on Consumer Theory

＊Compensated demand functions
EX:

Ｆigure65 ∶
min x,y : Pxx+Pyy
Foc=> xh,yh
s.t. u(x,y)=u
𝑃𝑥
Foc MRSxy=𝑃𝑦 ○1

u(x,y)=u ○2
𝑀𝑢 𝛼𝑦 𝑃𝑥 𝛽
○1 => MRSxy=𝑀𝑢𝑥 = (𝛽 𝑥 = 𝑃𝑦) , 𝛽𝑃𝑥 𝑥 = 𝛼𝑃𝑦 𝑦 , 𝑃𝑦 𝑦 = 𝛼 𝑃𝑥 𝑥
𝑦

𝛽 𝑃𝑥
y=𝛼 𝑃𝑦 𝑥 ○1 ’

○2 => 𝑥 𝛼 𝑦 𝛽 =u
○1 ’→○2
𝛽 𝑃𝑥
𝑥 𝛼 (𝛼 𝑃𝑦)𝛽 𝑥 𝛽 = 𝑢 u(x,y)= x α y β

𝛽 𝑃𝑥 α m β m
𝑥 𝛼+𝛽 (𝛼 𝑃𝑦)𝛽 = 𝑢 x*=α+β P , y*=α+β P
x y
 𝛽 𝑃𝑥 α m β m
𝑥 𝛼+𝛽 = (𝛼 𝑃𝑦)𝛽 𝑢 u(x*,y*)=(α+β)α (P )α．(α+β)β (P )β
x y

αα ββ mα+β
𝑥 ℎ = 𝑥(𝑃𝑥, 𝑃𝑦, 𝑢) =(α+β)α+β β
Pα
x Py

β 1
α Px
𝑥 h = (β Py)α+β uα+β
α 1
β Px
𝑦 h = (α Py)α+β uα+β

max x,y : u(x,y) vs. min x,y: Pxx+Pyy Px xh+Py yh is s function of Px,
Py ,u
s.t. Pxx+Pyy=m s.t. u(x,y)=u e(Px,Py,u)= Px xh+Py yh
=>x*=x(Px,Py,m) => xh=x(Px,Py,u) =Px x(Px,Py,u)+ Py y(Px,Py,u)
y*=y(Px,Py,m) yh=y(Px,Py,u) expenditure function 支出函數

u(x*,y*)=u(x(Px,Py,m), y(Px,Py,m))=v (Px,Py,m)

indirect utility function 間接效用函數

(1)

Ｆigure66 ∶ Compensated demand functions(Hickian demand functions)

𝑑𝑥 𝑑𝑥 𝑑𝑥
[𝑑𝑃 ]𝑃𝐸 = [𝑑𝑃 ]𝑆𝐸 + [𝑑𝑃 ]𝐼𝐸
𝑥 𝑥 𝑥

slope of ordinary demand function

slope of the compensated demand function
dm=-(dPx)x
𝑑𝑚
 dPx= −𝑥
 𝑑𝑥 𝑑𝑥 𝑑𝑥
[𝑑𝑃 ]𝐼𝐸 = 𝑑𝑚 =-x𝑑𝑚
𝑥
−𝑥

𝑑𝑥 𝑑𝑥 𝑑𝑥
[𝑑𝑃 ]𝑔𝑖𝑣𝑒𝑛 𝑚 = [𝑑𝑃 ]𝑔𝑖𝑣𝑒𝑛 𝑢 − 𝑥 𝑑𝑚
𝑥 𝑥

𝑑𝑥 ∗ 𝑑𝑥 ℎ 𝑑𝑥 ∗
= − 𝑥 𝑑𝑃 slutsky Equation
𝑑𝑃𝑥 𝑑𝑃𝑥 𝑥

PE SE IE
𝑑𝑥 ∗ 𝑃𝑥 𝑑𝑥 ℎ 𝑃𝑥 𝑑𝑥 ∗ 𝑃
= − 𝑥 𝑑𝑚 𝑥𝑥∗ 𝑥 ∗ = 𝑥 ℎ at equilibrium
𝑑𝑃𝑥 𝑥 ∗ 𝑑𝑃𝑥 ℎ

𝑑𝑥∗ 𝑑𝑥ℎ 𝑑𝑥∗

𝑃𝑥 𝑥 𝑥∗
− 𝑥∗
𝑑𝑃𝑥 =− 𝑥ℎ
𝑑𝑃𝑥 + 𝑚 𝑑𝑚
=> 𝜀𝑋𝑃∗ = 𝜀𝑋𝑃ℎ + 𝑒𝑥 𝜀𝑋𝑚∗
𝑃𝑥 𝑃𝑥 𝑚

𝜀𝑋𝑃∗ = 𝜀𝑋𝑃ℎ + 𝑒𝑥 ．𝜀𝑥𝑚

(2)

Ｆigure67 ∶Compensated demand function

dx dx dx
[dP ]PE = [dP ]SE + [dP ]IE
x x x

slope of ordinary demand function

slope of the compensated demand function
dm=-(dPx)x
𝑑𝑚
 dPx= −𝑥

𝑑𝑥 𝑑𝑥 𝑑𝑥
[𝑑𝑃 ]IE = 𝑑𝑚 =-x𝑑𝑚
𝑥
−𝑥

𝑑𝑥 𝑑𝑥 𝑑𝑥
[𝑑𝑃 ]given m = [𝑑𝑃 ]given 𝑢 − 𝑥 𝑑𝑚
𝑥 𝑥

𝑑𝑥 ∗ 𝑑𝑥 ℎ 𝑑𝑥 ∗
= − 𝑥 𝑑𝑃 slutsky Equation
𝑑𝑃𝑥 𝑑𝑃𝑥 𝑥

PE SE IE
𝑑𝑥 ∗ 𝑃𝑥 𝑑𝑥 ℎ 𝑃𝑥 𝑑𝑥 ∗ 𝑃
= − 𝑥 𝑑𝑚 𝑥𝑥∗ 𝑥 ∗ = 𝑥 ℎ at equilibrium
𝑑𝑃𝑥 𝑥∗ 𝑑𝑃𝑥 ℎ

𝑑𝑥∗ 𝑑𝑥ℎ 𝑑𝑥∗

𝑃𝑥 𝑥 𝑥∗
− 𝑥∗
𝑑𝑃𝑥 =− 𝑥ℎ
𝑑𝑃𝑥 + 𝑚 𝑑𝑚
=> 𝜀𝑋𝑃∗ = 𝜀𝑋𝑃ℎ + 𝑒𝑥 𝜀𝑋𝑚∗
𝑃𝑥 𝑃𝑥 𝑚

𝜀𝑋𝑃∗ = 𝜀𝑋𝑃ℎ + 𝑒𝑥 ．𝜀𝑥𝑚

(3)
dx∗ dxh dx∗
? − y dm
dPy Py

dm
dm=-(dPy)y => dPy=- y

dx dx dx∗
[ dP ]IE = dm = −y dm
y −
y

dx∗ dxh dx∗

= dP − y dm
dPy y

PE SE IE
dx∗ Py dxh Py dx∗ Py
= dP − y dm x∗
dPy X∗ y xh

𝑑𝑥∗ 𝑑𝑥ℎ 𝑑𝑥∗

𝑥∗ 𝑥ℎ 𝑃𝑦 𝑦 𝑥∗
− 𝑑𝑃𝑦 =− 𝑑𝑃𝑦 +
𝑚 𝑑𝑚
𝑃𝑦 𝑃𝑦 𝑚

𝜀𝑥𝑦 = 𝜀𝑥 ℎ 𝑦 + 𝑒𝑦 𝜀𝑥𝑚 (a)

In previous discussion,
𝑑𝑥 ∗
> 0 => 𝑋 𝑎𝑛𝑑 𝑌 𝑎𝑟𝑒 𝑔𝑟𝑜𝑠𝑠 𝑠𝑢𝑏𝑠𝑡𝑖𝑡𝑢𝑡𝑒𝑠.
𝑑𝑃𝑦

𝑑𝑥 ∗
< 0 => 𝑋 and 𝑌 are gross complements.
𝑑𝑃𝑦
 𝑑𝑥 ℎ
> 0 => 𝑋 𝑎𝑛𝑑 𝑌 𝑎𝑟𝑒 𝑛𝑒𝑡 𝑠𝑢𝑏𝑠𝑡𝑖𝑡𝑢𝑡𝑒𝑠.
𝑑𝑃𝑦

𝑑𝑥 ℎ
< 0 => 𝑋 and 𝑌 are net complements.
𝑑𝑃𝑦

From (a), 𝜀𝑥 ℎ 𝑦 < 0, > 0 (X 𝑎𝑛𝑑 Y 𝑎𝑟𝑒 𝑛𝑒𝑡 𝑠𝑢𝑏𝑠𝑡𝑖𝑡𝑢𝑡𝑒𝑠/𝑐𝑜𝑚𝑝𝑙𝑒𝑚𝑒𝑛𝑡𝑠)

and 𝜀𝑥𝑚 < 0, > 0 (𝑋 𝑖𝑠 𝑖𝑛𝑓𝑒𝑟𝑖𝑜𝑟/𝑛𝑜𝑟𝑚𝑎𝑙 𝑔𝑜𝑜𝑑)
=> 𝜀𝑥𝑦 < 0, > 0 (𝑋 and 𝑌 are gross substitutes/complements)

compensating variation (CV) 補償變量

Equivalent variation (EV) 等值變量
與消費者滿意度有關
max x,y: u(x,y) 𝑥 ∗ , 𝑦 ∗ ordinary demand fct.
s.t. Pxx+Pyy=m u(𝑥 ∗ , 𝑦 ∗)= V(Px,Py,m) indirect utility
市場上看不到，卻有存在而被估計的
min x,y: Pxx+Pyy 𝑥 ℎ , 𝑦 ℎ compensated demand fct.
s.t. u(x,y) e(Px,Py,u)= Px𝑥 ℎ +Py𝑦 ℎ expenditure fct.

Ｆigure68 ∶

Ｆigure69 ∶
𝑥ℎ = 𝑥∗
𝑦ℎ = 𝑦∗ 為了滿足均衡而有的結果
e=Px𝑥 ℎ + Py𝑦 ℎ = Px𝑥 ∗ + Py𝑦 ∗ =m
 e(Px ,Py ,u(𝑥 ∗ , 𝑦 ∗))=m
change in Px → change in 𝑥 ∗ , 𝑦 ∗
→ change in u(x ∗ , y ∗ )
suppose ther is a tox on X => Px↑→𝑥 ∗ , 𝑦 ∗ change
how to measure the change in u(x ∗ , y ∗ ) ?
補貼多少才能回到 original utility?
change in u(𝑥 ∗ , 𝑦 ∗ ) ~ change in income