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On the Confirmation of the Law of Demand

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  • Philippe Mongin

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

Abstract

The paper relates the microeconomic law of demand to the theories of empirical confirmation that are developed by Hempel and Popper, respectively. After restating the Hicksian basis of consumer theory and stressing that this theory has never subjected the law to a rigorous test, the paper analyzes Hildenbrand's novel contribution. In Market Demand (1994), Hildenbrand offers an original derivation of the law of demand to the market, with a view of making it eventually possible to test the law. The article shows that Hildenbrand's approach makes sense within a neo-Hempelian, as opposed to a Popperian, outlook on empirical confirmation, and it uses the case itself to argue for the former against the latt.

Suggested Citation

  • Philippe Mongin, 2005. "On the Confirmation of the Law of Demand," Working Papers hal-00242978, HAL.
    • Handle: RePEc:hal:wpaper:hal-00242978
    Note: View the original document on HAL open archive server: https://hal.science/hal-00242978
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    References listed on IDEAS

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    1. Philippe Mongin, 2007. "L'a priori et l'a posteriori en économie," Recherches économiques de Louvain, De Boeck Université, vol. 73(1), pages 5-53.
    2. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    3. Hildenbrand, Werner, 1989. "Facts and ideas in microeconomic theory," European Economic Review, Elsevier, vol. 33(2-3), pages 251-276, March.
    4. Hildenbrand, Werner, 1983. "On the "Law of Demand."," Econometrica, Econometric Society, vol. 51(4), pages 997-1019, July.
    5. George J. Stigler, 1947. "Notes on the History of the Giffen Paradox," Journal of Political Economy, University of Chicago Press, vol. 55, pages 152-152.
    6. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    7. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521425230, December.
    8. Hardle, Wolfgang & Hildenbrand, Werner & Jerison, Michael, 1991. "Empirical Evidence on the Law of Demand," Econometrica, Econometric Society, vol. 59(6), pages 1525-1549, November.
    9. Blundell, Richard, 1988. "Consumer Behaviour: Theory and Empirical Evidence--a Survey," Economic Journal, Royal Economic Society, vol. 98(389), pages 16-65, March.
    10. Hicks, J. R., 1986. "A Revision of Demand Theory," OUP Catalogue, Oxford University Press, number 9780198285502.
    11. John S. Chipman & Jean-Sébastien Lenfant, 2002. "Slutsky's 1915 Article: How It Came to Be Found and Interpreted," History of Political Economy, Duke University Press, vol. 34(3), pages 553-597, Fall.
    12. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, December.
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    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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