Small Income Effects: A Marshallian Theory of Consumer Surplus and Downward Sloping Demand Export

@article{citeulike:1032851, abstract = {We formalize the Marshallian idea that when the proportion of income spent on any commodity is small then the income effects are small. If n is the number of goods, we show, under certain assumptions on preferences and prices, that the order of magnitude of the norm of the income derivative of demand is 1/\??. As a corollary we get that for the case of a single price change the percentage error in approximating the Hicksian Deadweight Loss by its Marshallian counterpart goes to zero at least at the rate 1/\?? and that demand is downward sloping for n large enough.}, author = {Vives, Xavier}, citeulike-article-id = {1032851}, citeulike-linkout-0 = {http://www.jstor.org/stable/2297448}, journal = {The Review of Economic Studies}, keywords = {410-2, partialequilibrium}, number = {1}, pages = {87--103}, posted-at = {2007-01-10 05:54:20}, priority = {2}, title = {Small Income Effects: A Marshallian Theory of Consumer Surplus and Downward Sloping Demand}, url = {http://www.jstor.org/stable/2297448}, volume = {54}, year = {1987} }

TY - JOUR ID - citeulike:1032851 L3 - citeulike-article-id:1032851 N2 - We formalize the Marshallian idea that when the proportion of income spent on any commodity is small then the income effects are small. If n is the number of goods, we show, under certain assumptions on preferences and prices, that the order of magnitude of the norm of the income derivative of demand is 1/\??. As a corollary we get that for the case of a single price change the percentage error in approximating the Hicksian Deadweight Loss by its Marshallian counterpart goes to zero at least at the rate 1/\?? and that demand is downward sloping for n large enough. IS - 1 JF - The Review of Economic Studies EP - 103 TI - Small Income Effects: A Marshallian Theory of Consumer Surplus and Downward Sloping Demand VL - 54 SP - 87 KW - 410-2 KW - partialequilibrium AU - Vives, Xavier PY - 1987/// UR - http://www.jstor.org/stable/2297448 ER -