The substitution effect from the profit function in consumption: Expressions from the marshallian, hicksian, and frischian demand functions

Gimenez-Nadal, José Ignacio (Universidad de Zaragoza)

Resumen: In the context of the optimizing behaviour assumption of individuals (Becker, 1976), three types of demand functions appear: Marshallian, Hicksian, and Frischian functions (Sproule, 2013). The Substitution Effect (SE) is a relevant concept, with our short paper developing two alternative theoretical expressions, specifically focusing on the Profit Function in Consumption and the Frischian functions. I address the fact that these demand functions with constant marginal utility of income play a very relevant role in the inter-temporal context.

Idioma: Inglés

DOI: 10.17811/ebl.7.3.2018.92-97

Año: 2018

Publicado en: Economics and business letters 7, 3 (2018), 92-97
ISSN: 2254-4380

Factor impacto SCIMAGO: 0.104 - Economics, Econometrics and Finance (miscellaneous) (Q4) - Business and International Management (Q4)

Tipo y forma: Article (Published version)

Área (Departamento): Área Fund. Análisis Económico (Dpto. Análisis Económico)