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Is Marshall's Utility a Form of Wealth


  • Gopinath VadirajaRao Bangalore

    (No affiliation)


Marshall's Utility which is nothing but need or usefulness satisfies the requirements of wealth. It can be expressed in units of wealth. It can be changed into other forms of wealth. It also moves from higher concentration to lower concentration. Like water in chemistry, this utility is a universal solvent in economics in which all other forms of wealth dissolve. This utility is made up of two components; A)goods and services that are otherwise called WANTS and B)money and money related wealth forms that are called MEANS. Utility complex of any economic system say, individual, family, state, nation, business entity, association etc., tries to attain equilibrium between these two components of wealth. True equilibrium is a rare phenomenon. As one approaches the true equilibrium state one gets more active economically. Deficit budgetting helps a nation approach equilibrium state and there by increases economic activity.

Suggested Citation

  • Gopinath VadirajaRao Bangalore, 2005. "Is Marshall's Utility a Form of Wealth," Microeconomics 0503002, EconWPA.
  • Handle: RePEc:wpa:wuwpmi:0503002
    Note: Type of Document - doc; pages: 8. Human behavior, economics and chemistry are inter-related. the basic principles are common to all.

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    References listed on IDEAS

    1. Morrison, Catherine, 1988. "Subequilibrium in the North American Steel Industries: A Study of Short Run Biases from Regulation and Utilisation Fluctuations," Economic Journal, Royal Economic Society, vol. 98(391), pages 390-411, June.
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    3. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    4. Slade, Margaret E., 1986. "Total-factor-productivity measurement when equilibrium is temporary : A Monte Carlo assessment," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 75-95.
    5. Morrison, C. J. & Berndt, E. R., 1981. "Short-run labor productivity in a dynamic model," Journal of Econometrics, Elsevier, vol. 16(3), pages 339-365, August.
    6. Nelson, Randy A, 1989. "On the Measurement of Capacity Utilization," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 273-286, March.
    7. Reghubendra, J. & Murty, M.N. & Paul, S. & Rao, B.B., 1992. "An Analysis of Technological Change, Factor Substitution and Economies of Scale in Manufacturing Industries in India," Papers e9214, Western Sydney - School of Business And Technology.
    8. Berndt, Ernst R. & Fuss, Melvyn A., 1986. "Productivity measurement with adjustments for variations in capacity utilization and other forms of temporary equilibrium," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 7-29.
    9. Morrison, Catherine J, 1988. "Quasi-Fixed Inputs in U.S. and Japanese Manufacturing: A Generalized Leontief Restricted Cost Function Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 275-287, May.
    10. J. M. Cassels, 1937. "Excess Capacity and Monopolistic Competition," The Quarterly Journal of Economics, Oxford University Press, vol. 51(3), pages 426-443.
    11. Charles R. Hulten & Sylaja Srinivasan, 1999. "Indian Manufacturing Industry: Elephant or Tiger? New Evidence on the Asian Miracle," NBER Working Papers 7441, National Bureau of Economic Research, Inc.
    12. Lawrence R. Klein, 1958. "The Measurement of Capacity," Cowles Foundation Discussion Papers 49, Cowles Foundation for Research in Economics, Yale University.
    13. Hazilla, Michael & Kopp, Raymond J., 1986. "Testing for separable functional structure using temporary equilibrium models," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 119-141.
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    equilibrium; utility; law of conservation;

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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