SFB 303 Discussion Paper No. A - 580
Author: Hildenbrand, K.
Title: On J.M. Grandmont's Modelling of Behavioral Heterogeneity
Abstract: J.M. Grandmont claims in his paper "Transformations of the
Commodity Space, Behavioral Heterogeneity, and the Aggregation Problem" (1992) to model "behavioral heterogeneity".
By a specific parametrization he defines a subset of all demand functions and assumes that the distribution of the parameters is
getting more dispersed (increasing flatness of the density function). This
increasing dispersedness of the parameters is interpreted as "increasing heterogeneity" of the population of households described by the distribution of demand functions. But, due
to the specific parametrization, increasing dispersedness of the parameters
leads to an increasing concentration of the demand functions. Therefore,
roughly speaking, Grandmont rather models increasing "behavioral
similarity".
Keywords: Aggregate Demand, Aggregation, Behavioral Heterogeneity
JEL-Classification-Number:
Creation-Date: July 1998
URL: ../1998/a/bonnsfa580.pdf"
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