Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 1963, Volume 31, Issue 3

Consumer Demand Explained by Measurable Utility Changes<499:CDEBMU>2.0.CO;2-6
p. 499-513

G. S. Tolley, R. W. Gieseman

Percentage changes in marginal utility are found to be invariant to utility transformations. They are quantifiable in the ordinary sense, and price and income elasticities can be expressed in terms of them. Definitions of necessity-luxury, independence and complementarity-substitutability in terms of the measurable utility changes lead to insights for empirical studies.

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