Modeling of activity characteristics of sectoral and regional subsystems
Methods and models in economy
F. Mironychev Separation of variables for utility functions
System analysis in medicine and biology
Sustainable development
F. Mironychev Separation of variables for utility functions

The current paper investigates the problem of construction of the utility function for a given demand function in small dimensional consumer models. The method of separation of variables is used for the utility function and for the demand function. It turns out it is possible to find a differential equation for the special generating function which allows to construct the indirect utility function for the given Marshallian demand function for the given initial conditions. Afterwards it is also possible to find the direct utility function and the Hicksian demand functions. Some examples demonstrate the application of this method. The mathematical model for only two consumer goods is considered. Author intentionally minimized the use of algebraic symbols and formalism to describe the matter of the article in order to make it usable as practice for college students.


utility function, generating function, mathematical model, separation of variables.

PP. 61-73.

DOI: 10.14357/20790279220106

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