Small Income Effects: A Marshallian Theory of Consumer Surplus and Downward Sloping Demand
AbstractThe author formalizes the Marshallian idea t hat when the proportion of income spent on any commodity is small then the incom e effects are small. If n is the number of goods, the author shows that the orde r of magnitude of the norm of the income derivative of demand is1/an. As a coro llary for the case of a single price change, the percentage error in approximati ng the Hicksian Deadweight Loss by its Marshallian counterpart goes to zero at l east at the rate 1/an and demand is downward sloping for n sufficiently large. Copyright 1987 by The Review of Economic Studies Limited.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Economic Studies.
Volume (Year): 54 (1987)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6527
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John H. Nachbar, 1998.
"The last word on Giffen goods?,"
Springer, vol. 11(2), pages 403-412.
- Eilon Solan & Nicolas Vieille, 2006.
"Equilibrium uniqueness with perfect complements,"
Springer, vol. 28(3), pages 721-726, 08.
- Alex Dickson & Roger Hartley, 2007.
"The strategic Marshallian cross,"
Keele Economics Research Papers
KERP 2007/13, Centre for Economic Research, Keele University.
- Edward Schlee, 2008.
"Expected consumer’s surplus as an approximate welfare measure,"
Springer, vol. 34(1), pages 127-155, January.
- Edward E Schlee, 2004. "Expected Consumer's Surplus as an Approximate Welfare Measure," Econometric Society 2004 North American Summer Meetings 97, Econometric Society.
- Edward Schlee, . "Expected Consumer's Surplus as an Approximate Welfare Measure," Working Papers 2144340, Department of Economics, W. P. Carey School of Business, Arizona State University.
- Edward Schlee, . "Expected Consumer's Surplus as an Approximate Welfare Measure," Working Papers 2133375, Department of Economics, W. P. Carey School of Business, Arizona State University.
- Miyake, Mitsunobu, 2006. "On the applicability of Marshallian partial-equilibrium analysis," Mathematical Social Sciences, Elsevier, vol. 52(2), pages 176-196, September.
- Michael Jerison & John K.-H. Quah, 2006. "Law of Demand," Discussion Papers 06-07, University at Albany, SUNY, Department of Economics.
- József Sákovics and Daniel Friedman (University of California at Santa Cruz), 2011.
"The marginal utility of money: A modern Marshallian approach to consumer choice,"
ESE Discussion Papers
209, Edinburgh School of Economics, University of Edinburgh.
- Friedman, Daniel & Sákovics, József, 2011. "The marginal utility of money: A modern Marshallian approach to consumer choice," SIRE Discussion Papers 2011-61, Scottish Institute for Research in Economics (SIRE).
- Ghosal, Sayantan, 2006. "Intertemporal coordination in two-period markets," Journal of Mathematical Economics, Elsevier, vol. 43(1), pages 11-35, December.
- Klaus Ritzberger & Frank Milne, 2002. "Strategic pricing of equity issues," Economic Theory, Springer, vol. 20(2), pages 271-294.
- Giuseppe Freni, 2001. "Sraffa's early contribution to competitive price theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 8(3), pages 363-390.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.