IDEAS home Printed from https://ideas.repec.org/a/ddj/fseeai/y2010i2p87-94.html
   My bibliography  Save this article

The Substitution and the Revenue Effects for a Cobb-Douglas Utility Function

Author

Listed:
  • Catalin Angelo IOAN

    (Danubius University, Galati, Romania)

  • Gina IOAN

    (Danubius University, Galati, Romania)

Abstract

In the consumer’s theory, a crucial problem is to determine the substitution effect and the revenue effect in the case of one good price’s modifing. There exists two theories due to John Richard Hicks and Eugen Slutsky which allocates differents shares of the total change of the consumption to these effects. The paper makes an analysis between the two effects, considering the general case of a Cobb-Douglas utility function and introduces three indicators which will characterize these shares.

Suggested Citation

  • Catalin Angelo IOAN & Gina IOAN, 2010. "The Substitution and the Revenue Effects for a Cobb-Douglas Utility Function," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 87-94.
    • Handle: RePEc:ddj:fseeai:y:2010:i:2:p:87-94
    as

    Download full text from publisher

    File URL: http://www.ann.ugal.ro/eco/Doc2010_2/Ioan_Ioan.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catalin Angelo Ioan, 2012. "Considerations on the Hicks Effect for N Consumer’s Goods," EuroEconomica, Danubius University of Galati, issue 2(31), pages 116-126, May.

    More about this item

    Keywords

    Cobb-Douglas; substitution; revenue; utility;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ddj:fseeai:y:2010:i:2:p:87-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gianina Mihai (email available below). General contact details of provider: https://edirc.repec.org/data/fegalro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.