The Stone–Geary utility function takes the form where
is consumption of good
The Stone–Geary utility function gives rise to the Linear Expenditure System.
the demand function equals where
is total expenditure, and
is the price of good
The Stone–Geary utility function was first derived by Roy C. Geary,[2] in a comment on earlier work by Lawrence Klein and Herman Rubin.
[3] Richard Stone was the first to estimate the Linear Expenditure System.