Smallness of a commodity and partial equilibrium analysis

@article{Hayashi2013SmallnessOA,
  title={Smallness of a commodity and partial equilibrium analysis},
  author={Takashi Hayashi},
  journal={J. Economic Theory},
  year={2013},
  volume={148},
  pages={279-305}
}
Partial equilibrium analysis has a conceptual dilemma that its object should be negligibly small so as not to affect allocation of the other commodities but then the consumer does not care for it and the notion of willingness to pay for it does not make sense. In the setting of a continuum of commodities, we propose a limiting procedure which transforms the many-commodity environment into a partial singlecommodity environment. In the limit, the notion of willingness to pay for a commodity is… CONTINUE READING
BETA

From This Paper

Topics from this paper.

Citations

Publications citing this paper.
SHOWING 1-2 OF 2 CITATIONS

References

Publications referenced by this paper.
SHOWING 1-5 OF 5 REFERENCES

A note on small income effects

  • T. Hayashi
  • J. Econ. Theory 139
  • 2008
2 Excerpts

Small income effects: A Marshallian theory of consumer surplus and downward sloping demand

  • X. Vives
  • Rev. Econ. Stud. 54 (1)
  • 1987
2 Excerpts

Value and Capital: An Inquiry into Some Fundamental Principles in Economics

  • J. R. Hicks
  • Oxford
  • 1939
3 Excerpts

Principle of Economics

  • A. Marshall
  • Macmillan, London
  • 1920
2 Excerpts

Similar Papers

Loading similar papers…