Implicit separability: Characterisation and implications for consumer demands (Q1181671)

The paper defines a general notion of implicit separability where a utility function \(U(x)\) is separable if \(u=U(x)\) is equivalent to \(F(u,z)=G(u,y)\), where the vector \(x\) is partitioned as \((z,y)\). This notion contains the usual concepts of separability as special cases. Several equivalent characterizations of implicit separability are given in terms of the expenditure function, of the compensated demands, and of the Slutsky matrix.