Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-33268
Ewerhart, Christian (2003). A short and intuitive proof of Marshall's rule. Economic Theory, 22(2):415-418.
![[img]](http://www.zora.uzh.ch/style/images/fileicons/application_pdf.png)
| Accepted Version 1106Kb |
Abstract
When the price of an input factor to a production process increases, then the optimal output level declines and the input is substituted by other factors. Marshall's rule is a formula that determines the own-price elasticity for one factor as a weighted sum of the elasticities of output market demand and factor substitution. This note offers a proof for Marshall's rule that is significantly shorter and somewhat more intuitive than existing derivations.
| Item Type: | Journal Article, refereed, original work |
|---|---|
| Communities & Collections: | 03 Faculty of Economics > Department of Economics |
| DDC: | 330 Economics |
| Language: | English |
| Date: | 2003 |
| Deposited On: | 06 Apr 2010 13:20 |
| Last Modified: | 23 Nov 2012 16:58 |
| Publisher: | Springer |
| ISSN: | 0938-2259 |
| Publisher DOI: | 10.1007/s00199-002-0291-x |
| WoS Citation Count: | 1 |
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page
