A short and intuitive proof of Marshall's Rule

B-Tier
Journal: Economic Theory
Year: 2003
Volume: 22
Issue: 2
Pages: 415-418

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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. Copyright Springer-Verlag Berlin Heidelberg 2003

Technical Details

RePEc Handle
repec:spr:joecth:v:22:y:2003:i:2:p:415-418
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25