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What is the difference between slutsky and hicksian approach of in difference curve?
Wiki User
∙ 13y ago
The Hicks substitution effect keep utility constant rather than keeping pur-
chasing power constant.
Wiki User
∙ 13y ago
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Hicks and slutsky theories on income and substitution effects?
jai jawan jai kisan
All giffen goods are Inferior good but not all inferior goods are giffen goods. explain?
Proof that all Giffen goods are inferior goods but not all inferior goods are Giffen goods. A Giffen good is defined as dx/dp > 0 (i.e. quantity demanded increases with own-price). An inferior good is defined as dx/dm < 0 (i.e. quantity demanded decreases with income). The own-price Slutsky equation tells that: dx/dp = dh/dp - x(dx/dm) (own-price elasticity of demand = substitution effect - income effect), where h is the Hicksian demand. dh/dp is always negative. If the good is Giffen, then the left hand side of the Slutsky equation is positive. Since dh/dp is negative, then it must be the case that dx/dm is negative (i.e. the good is inferior), since otherwise a positive income effect subtracted from the substitution effect would give a negative result. Therefore, all Giffen goods are inferior goods. Yet, it may be the case that x(dx/dm) is negative, an inferior good, but that the income effect is lesser than the substitution effect, so that the left hand side of the equation remains negative. Thus, not all inferior goods are Giffen.
When was Abram Slutsky born?
Abram Slutsky was born in 1898.
When did Abram Slutsky die?
Abram Slutsky died in 1938.
When was Allan Slutsky born?
Allan Slutsky was born in 1950.
When was Erik Slutsky born?
Erik Slutsky was born in 1953.
When did Boris Slutsky die?
Boris Slutsky died in 1986.
When was Boris Slutsky born?
Boris Slutsky was born in 1919.
When did Eugen Slutsky die?
Eugen Slutsky died on 1948-03-10.
When was Eugen Slutsky born?
Eugen Slutsky was born on 1880-04-07.
When was Leonid Slutsky - politician - born?
Leonid Slutsky - politician - was born in 1968.
When was Leonid Viktorovich Slutsky born?
Leonid Viktorovich Slutsky was born on 1971-05-04.
Hicks and slutsky theories on income and substitution effects?
jai jawan jai kisan
What does the last name slutsky mean?
It's the trainer of CSKA, great Russian football (soccer) team. It's not depends on English word "slut" :D And I think that more true transliteration is "Sluckij"
