IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v4y1976i4p493-500.html
   My bibliography  Save this article

Hicks, Marshall, and Points Off the Demand Curve

Author

Listed:
  • Michael P. Murray

    (University of Virginia)

Abstract

It is well known that Marshall's measure of consumer's surplus is an underestimator of Hicks' equivalent variation of consumer's surplus when the points under consideration are on the consumer's demand curve. In this note it is shown that when the points are not both on the demand curve, a common situation for many policy questions, Marshall's measure may become an overestimator of Hick's measure.

Suggested Citation

  • Michael P. Murray, 1976. "Hicks, Marshall, and Points Off the Demand Curve," Public Finance Review, , vol. 4(4), pages 493-500, October.
    • Handle: RePEc:sae:pubfin:v:4:y:1976:i:4:p:493-500
    DOI: 10.1177/109114217600400408
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217600400408
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217600400408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. DeSalvo, Joseph S, 1975. "Benefits and Costs of New York City's Middle-Income Housing Program," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 791-805, August.
    2. Foster, Christopher D & Neuburger, H L I, 1974. "The Ambiguity of the Consumer's Surplus Measure of Welfare Change," Oxford Economic Papers, Oxford University Press, vol. 26(1), pages 66-77, March.
    3. Olsen, Edgar O, 1972. "An Econometric Analysis of Rent Control," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1081-1100, Nov.-Dec..
    4. Silberberg, Eugene, 1972. "Duality and the Many Consumer's Surpluses," American Economic Review, American Economic Association, vol. 62(5), pages 942-952, December.
    5. Murray, Michael P, 1975. "The Distribution of Tenant Benefits in Public Housing," Econometrica, Econometric Society, vol. 43(4), pages 771-788, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael P. Murray, 1978. "Methodologies for Estimating Housing Subsidy Benefits," Public Finance Review, , vol. 6(2), pages 161-192, April.
    2. Coffey, Cathal & Hogan, Paul J. & McQuinn, Kieran & O'Toole, Conor & Slaymaker, Rachel, 2022. "Rental inflation and stabilisation policies: international evidence and the Irish experience," Research Series, Economic and Social Research Institute (ESRI), number RS136, June.
    3. Richard Cornes & Robert Albon, 1981. "Evaluation of Welfare Change in Quantity‐Constrained Regimes," The Economic Record, The Economic Society of Australia, vol. 57(2), pages 186-190, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nisha Agrawal, 1988. "The Economic Effects of Public Housing in Australia," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 254-267, December.
    2. Claire Holton Hammond, 1987. "Some Methodological Developments in the Measurement of the Benefit of an In-Kind Transfer," The American Economist, Sage Publications, vol. 31(2), pages 44-52, October.
    3. B.L. DeBorger, 1985. "Benefits and Consumption Effects of Public Housing Programs in Belgium: Some Aggregate Results," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 409-419, October.
    4. Hans van Fulpen, 1988. "An Analysis of the Housing Market in the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 25(3), pages 190-203, June.
    5. Miguel Angel López García, 1992. "Algunos aspectos de la economía y la política de la vivienda," Investigaciones Economicas, Fundación SEPI, vol. 16(1), pages 3-41, January.
    6. Lin, Cho-Min, 1989. "The benefits of the subsidized housing programs: public housing, rent certificates, and the housing voucher program," ISU General Staff Papers 1989010108000017598, Iowa State University, Department of Economics.
    7. Alan S. Caniglia, 1984. "Intertemporal Effects, Intertemporal Suitability, and the Analysis of In-Kind Subsidy Programs," Public Finance Review, , vol. 12(4), pages 395-406, October.
    8. le Blanc, David & Laferrere, Anne, 2001. "The Effect of Public Social Housing on Households' Consumption in France," Journal of Housing Economics, Elsevier, vol. 10(4), pages 429-455, December.
    9. Hon-Kwong Lui, 2007. "The Redistributive Effect of Public Housing in Hong Kong," Urban Studies, Urban Studies Journal Limited, vol. 44(10), pages 1937-1952, September.
    10. Fu-Lai Yu & Si-Ming Li, 1985. "The Welfare Cost of Hong Kong's Public Housing Programme," Urban Studies, Urban Studies Journal Limited, vol. 22(2), pages 133-140, April.
    11. LaPlue, Lawrence D., 2022. "Environmental consequences of natural gas wellhead pricing deregulation," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    12. Malpezzi, Stephen, 1998. "Welfare analysis of rent control with side payments: a natural experiment in Cairo, Egypt1," Regional Science and Urban Economics, Elsevier, vol. 28(6), pages 773-795, November.
    13. Rebecca Diamond & Tim McQuade & Franklin Qian, 2019. "The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," American Economic Review, American Economic Association, vol. 109(9), pages 3365-3394, September.
    14. Genius, Margarita & Stefanou, Spiro E. & Tzouvelekas, Vangelis, 2012. "Measuring productivity growth under factor non-substitution: An application to US steam-electric power generation utilities," European Journal of Operational Research, Elsevier, vol. 220(3), pages 844-852.
    15. Palmquist, Raymond B., 2005. "Weak complementarity, path independence, and the intuition of the Willig condition," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 103-115, January.
    16. Blackorby, Charles & Murty, Sushama, 2007. "Unit versus ad valorem taxes: Monopoly in general equilibrium," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 817-822, April.
    17. Joan Monras & Jose G. Montalvo, 2023. "The Effect of Second-Generation Rent Controls: New Evidence from Catalonia," Working Paper Series 2023-28, Federal Reserve Bank of San Francisco.
    18. Kenneth G. Willis & Stephen Malpezzi & A. Graham Tipple, 1990. "An Econometric and Cultural Analysis of Rent Control in Kumasi, Ghana," Urban Studies, Urban Studies Journal Limited, vol. 27(2), pages 241-257, April.
    19. David L. Mengle, 1985. "The effect of second generation rent controls on the quality of rental housing," Working Paper 85-05, Federal Reserve Bank of Richmond.
    20. Fetter, Daniel K., 2016. "The Home Front: Rent Control and the Rapid Wartime Increase in Home Ownership," The Journal of Economic History, Cambridge University Press, vol. 76(4), pages 1001-1043, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:4:y:1976:i:4:p:493-500. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.