Slutsky equation
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English[edit]
Etymology[edit]
Named after Russian mathematical statistician and economist Eugen E. Slutsky.
Proper noun[edit]
- (economics) An equation that relates changes in Marshallian (uncompensated) demand to changes in Hicksian (compensated) demand, designed to explore a consumer's response to changes in price.
- Synonym: Slutsky identity
- 1972, Stanley Fischer, Econometrica, volume 40, number 2, page 371:
- This correspondence is then used in a derivation of Slutsky equations for assets.