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.
Izvorni zapis
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- 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
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