The Marshallian demand curve revisited.

Did Marshall assume a compensated or an uncompensated demand curve? I argue that it was neither: I show that the Marshallian demand curve is a willingness-to-pay curve derived under the assumption that all prices and income are held constant. This curve approximates both compensated and uncompensate...

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Publicado en:European Journal of the History of Economic Thought Vol. 27; no. 1; pp. 108 - 131
Autor principal: Hudik, Marek
Formato: Artículo
Publicado: Taylor & Francis Ltd Feb2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Marshallian demand curve revisited.
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        au: Hudik, Marek
      su:
        Demand function
        Neoclassical school of economics
        Willingness to pay
        Prices
        Income
      sug:
        subj:
          Demand function
          Neoclassical school of economics
          Willingness to pay
          Prices
          Income
      keyword:
        compensated demand
        marginal utility of money
        Marshallian demand curve
        uncompensated demand
        willingness to pay
      ab: Did Marshall assume a compensated or an uncompensated demand curve? I argue that it was neither: I show that the Marshallian demand curve is a willingness-to-pay curve derived under the assumption that all prices and income are held constant. This curve approximates both compensated and uncompensated demand curves only if expenditure on the good in question represents a negligible part of the consumer budget. I argue that my interpretation, highlighting the approximate character of Marshall's approach, provides a more accurate account of the Marshallian demand curve than do alternative interpretations that rely on the utility-maximization framework and mathematical exactness.
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    language: English
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