Slutsky Equation
The Slutsky equation, derived by Russian economist Eugen Slutsky in 1915, is a fundamental identity in microeconomics that decomposes the total change in demand for a good into two effects: the substitution effect and the income effect. Formalizing John Hicks' later interpretation, it provides the mathematical foundation for understanding consumer response to price changes and for distinguishing welfare-relevant demand responses.
Source record
Citations copied verbatim from the method’s source record. No claim-level verification is inferred from them.
- Slutsky, E. E. (1915). On the Theory of the Budget of the Consumer. In G. J. Stigler & K. E. Boulding (Eds.), Readings in Price Theory, 27–56. · URL
- Hicks, J. R. (1939). Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory. Oxford University Press. · URL
- Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic Theory. Oxford University Press. · URL
Curated claims
Claims persisted in the evidence ledger, each with its own assessment.
This view does not invent a claim assessment when the ledger has none.
Related methods
Generated from the method graph and shown as machine-suggested relations — no evidence claim is inferred.