Did Pareto discover income and substitution effects? On an interpretation suggested by Hutchison
AbstractTerence Hutchison (1953) has argued that in his Manual of Political Economy Vilfredo Pareto provided a verbal, non-mathematical description of income and substitution effects. Hutchison's claim on Pareto''s behalf is important since it would move the date of the discovery of the concept (if not the mathematical proof) of separate income and substitution effects back from 1915 to the 1906 publication of the original Italian language version of the Manual, and would reassign priority for the discovery from Slutsky to Pareto. This note reexamines this claim of Hutchison''s, and shows that in fact it is mistaken. Pareto did not actually discuss income and substitution effects as they are now understood. Rather, in the passage which Hutchison cites, Pareto was discussing the impact of a change in income, not prices, on quantities demand.
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.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 2 (2002)
Issue (Month): 2 ()
Contact details of provider:
Find related papers by JEL classification:
- B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George J. Stigler, 1950.
"The Development of Utility Theory. II,"
Journal of Political Economy,
University of Chicago Press, vol. 58, pages 373.
- Christian E. Weber, 1999. "Slutsky and Additive Utility Functions, 1947–1972," History of Political Economy, Duke University Press, vol. 31(2), pages 393-416, Summer.
- Christian E. Weber, 1999. "More on Slutsky's Equation as Pareto's Solution," History of Political Economy, Duke University Press, vol. 31(3), pages 575-586, Fall.
- Robert Sproule & Ambrose Leung, 2007. "Using the compensating and equivalent variations to define the Slutsky Equation under a discrete price change," Economics Bulletin, AccessEcon, vol. 4(11), pages 1-9.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
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.