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.
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|
|Deposited On:||06 Apr 2010 13:20|
|Last Modified:||28 Nov 2013 02:05|
|Citations:||Web of Science®. Times cited: 1|
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