A 'One Line' Proof of the Slutsky Equation

Published

Journal Article (Academic article)

This article discusses the key features of consumer theory on individual consumers' reaction to changes in the market price of commodities. The discussion presented that market price of a commodity can be broken into vectors of substitution effects and income effects. The price effect can be used on the Slutsky equation if the expenditure includes an expenditure function. The article has presented the equation used to determine the minimum expenditure necessary for the consumer to achieve any utility level if the consumer income faces a vector of commodity prices.

Full Text

Duke Authors

Cited Authors

  • Cook, PJ

Published Date

  • March 1, 1972

Published In

  • The American Economic Review

Start / End Page

  • 139 -