the Problem of the Substitution Properties of Production Frontier Demand Curves

Abstract

It is widely known that the substitutiun terco uf demand curves derived under the rlypothesis postulated by 1-IJks in his contribution of 1938 dz satisfy a set of conditions. The purpuse o f this paper is to empinre the appIícability of these tp demand curves derived under a set of conditions that differs from the orces chosen by Hicics in his seminal paper. To iiiustrate the readwr upan the nature of this problem we will develep the case of a consumer in a world of two goods by Eumparino two different demand curves: one derived under the set uf conditions In which the hicksian properties apply and the other a productilzin frontier demand curva which is a demand curve derived under an alternative jet of assumptinns,