Properties of the Armington Aggregator
Assume that the Armington aggregator \(A(x,y)\) is increasing in both arguments, homogeneous of degree one, and concave. Show that \(A_2(x,y)/A_1(x,y)\) can be written as \(P(x/y)\), with \(P'(\cdot)>0\).
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title: "Exercise 8.1"
subtitle: "Properties of the Armington Aggregator"
---
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## Problem
Assume that the Armington aggregator $A(x,y)$ is increasing in both arguments, homogeneous of degree one, and concave. Show that $A_2(x,y)/A_1(x,y)$ can be written as $P(x/y)$, with $P'(\cdot)>0$.
## Answer
_No solution has been posted yet. If you have a solution, we invite you to share it in the comment box at the bottom of this page._