While in conformance with the original approach of Alchian and Allen, our first version of the GAAT is concerned with a common unit cost component, our second version of the GAAT takes into account common proportional cost components.
In sum, both the GAAT versions for unit and for proportional cost components provide a decomposition of the cost effects into a pure substitution effect and an income-endowment effect.
From a more general perspective, while the familiar Slutsky equation decomposes the effect of a price change on (uncompensated) demand into a substitution and an income (and endowment) effect, the GAAT provides a similar decomposition for relative (uncompensated) demand.
For example, when applied to time allocation problems, the GAAT for unit cost components provides predictions for the change of the ratio of any two types of leisure activities in response to an increase in the wage rate.
Our main results are presented in Section III, where Propositions 2 and 4 provide the GAAT for unit cost and proportional cost components, respectively.
21) Glenn Dickson, 'Enduring Powers of Attorney v GAAT Orders, Part Two' (2004) 24(4) Proctor 17.
43) Glenn Dickson, 'Enduring Powers of Attorney v GAAT Orders: Part One' (2004) 24(3) Proctor 11, 12.
Its GAAT unit does not have any production capabilities and is engaged in managing the Turkish and Egyptian facilities of George.
Country: TurkeySector: Wholesale/Retail, Clothing/TextilesTarget: GAAT's sourcing divisionBuyer: Asda Group Ltd, George at AsdaVendor: Turkmen Group, GAAT Dis Ticaret Ve Sanayi ASType: Corporate acquisitionStatus: Closed