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Multiple Constraints and Hicksian Complementarity: A Generalization and an Application to Portfolio Choice
Author(s) -
Weber Christian E.
Publication year - 2003
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00156
Subject(s) - portfolio , complementarity (molecular biology) , economics , consumption (sociology) , constraint (computer aided design) , microeconomics , complement (music) , generalization , mathematical economics , econometrics , financial economics , mathematics , mathematical analysis , social science , biochemistry , chemistry , genetics , geometry , complementation , sociology , gene , biology , phenotype
Ian Steedman ( Consumption Takes Time: Implications for Economic Theory , Routledge, London, 2001) has shown, among other things, that when a household chooses amounts of time to allocate to competing consumption activities subject to both a money income constraint and a time constraint, at least two consumption activities must have at least one compensated complement each. This paper generalizes Steedman's result in several directions and uses the generalized version to study compensated complementarity among state–dependent consumption levels and asset purchases in a model of portfolio choice under uncertainty.