On separability: Functional structure (Q1820996)

Separability of variables is a concept of importance for economic theories; it has been extensively studied by Leontief, Debreu and others. Here are the definitions in a rather general case: Let \(U: S_ 1\times...\times S_ n\to {\mathbb{R}}\). A group of variables A \(\subset \{1,...,n\}\) is strictly (resp. nonstrictly) separable if for all y,y'\(\in \prod_{i\in A}S_ i\) the existence of some \(z^ 0\in \prod_{i\not\in A}S_ i\) such that \(U(y,z^ 0)\geq\) \((resp.>)\) \(U(y',z^ 0)\) implies U(y,z)\(\geq U(y',z)\) for all \(z\in \prod_{i\not\in A}S_ i\); A is strictly essential if for all \(z\in \prod_{i\not\in A}S_ i\) the function U(.,z) is not constant. The main result of the paper is the following theorem: If A and B are nonstrictly separable, \(A\cap B\), \(A\setminus B\) and \(B\setminus A\) are non-empty and strictly essential then \(A\cup B\), \(A\cap B\), \(A\Delta\) B and \(A\setminus B\) are nonstrictly separable. This is an analogue of \textit{W. M. Gorman}'s [The structure of utility functions, Rev. Econ. Stud. 35, 367-390 (1968; Zbl 0217.268)] theorem concerning strict separability.