<p>Frisch demands are demand equations found usually in an intermediate step of the standard utility maximization problem. By example for the basic two-good case of a consumer with quasilinear preferences:
<span class="math-container">$$U(x,y)=y+\ln (x)$$</span></p>
<p>the corresponding Frisch Demand is:</p>
<p><span class="math-container">$$x^f(\lambda,\text{p})=\frac{1}{\lambda p_x}$$</span></p>
<p>In general what are Frish demands useful for on their own? What Questions do they answer?</p>

CC BY-SA 4.0
2020-02-21T06:15:06.870Z
I have not heard of Frisch demand before, and fail to understand how it is calculated from your example. (What is $\lambda$?) Could you please explain how it is calculated or refer to an explanation?
Giskard
CC BY-SA 4.0
2020-02-21T06:23:48.640Z
@Giskard its a a quantity determined by prices and the marginal utility from money $\lambda$, this is from your standard utility maxization problem. From what I understand this $\lambda$ term embodies a the complicated allocation process each dollar that enters our consumer's hand goes through.
EconJohn
<microeconomics>
What are Frisch Demands useful for?
EconJohn
# What are Frisch Demands useful for?

(Asked by: username_0 on 2020-02-21)

Frisch demands are demand equations found usually in an intermediate step of the standard utility maximization problem. By example for the basic two-good case of a consumer with quasilinear preferences:
$$U(x,y)=y+\ln (x)$$

the corresponding Frisch Demand is:

$$x^f(\lambda,\text{p})=\frac{1}{\lambda p\_x}$$

In general what are Frish demands useful for on their own? What Questions do they answer?

**Tags:** microeconomics

> **Comments:**
> **username_1**: I have not heard of Frisch demand before, and fail to understand how it is calculated from your example. (What is $\lambda$?) Could you please explain how it is calculated or refer to an explanation?  
> **username_0**: @username_1 its a a quantity determined by prices and the marginal utility from money $\lambda$, this is from your standard utility maxization problem. From what I understand this $\lambda$ term embodies a the complicated allocation process each dollar that enters our consumer's hand goes through.  

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## 0 answers

