Title: An Analysis of the Substitution Effect and of Reven ue Effect in the Case of the Consumer's Theory Provided with a CES Utility Function
Abstract: In the consumer's theory, a crucial problem is to d etermine the substitution effect and the revenue effect in the case of one good price's modi fing. There exists two theories due to John Richard Hicks and Eugen Slutsky which allocates differents shares of the total change of the consumption to these effects. The paper makes an analysis between the two effects, considering the general case of a CES utility function and introduces three indicator s which will characterize these shares.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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