Chapter 8 Slutsky Equation
Chapter 8 Slutsky Equation
How the optimum moves when the price of a good changes?
⚫How the optimum moves when the price of a good changes?
Decomposition: othe total effect the substitution effect the income effect. p139
⚫Decomposition: ⚫the total effect = the substitution effect + the income effect. ⚫ p139
oThe pivot gives the substitution effect, othe shift gives the income effect. P103andp137
⚫The pivot gives the substitution effect, ⚫the shift gives the income effect. ⚫P103andp137
oSlutsky identity,pivoting the budget line around the original choice. Fig
⚫Slutsky identity, pivoting the budget line around the original choice. Fig
斯卢茨基分解 代收 效应 效应
Y X E E' G A B C D U1 U2 U3 替代 F 效应 收入 效应 斯卢茨基分解 O
Hicks decomposition, pivoting the budget line around the indifference curve. Fig
⚫Hicks decomposition, pivoting the budget line around the indifference curve. Fig
希克斯分解 代 收入
Y X E E' G U1 U2 替代 效应 收入 效应 希克斯分解 O