Analysis of Reciprocity and Substitution Theorems, and Slutsky Equation

Mohajan, Haradhan (2017): Analysis of Reciprocity and Substitution Theorems, and Slutsky Equation. Published in: Noble International Journal of Economics and Financial Research , Vol. 2, No. 3 (30 March 2017): pp. 54-75.

Abstract

The mathematical techniques are considered here to explain the economical problems. This article deals with the Substitution and Reciprocity Theorems for the various commodities. Finally, it also has considered the Slutsky Equation for the minimization of the prices and the budget constraints. The study has included analysis of some explicit examples to clarify the concepts of the results. The aim of this paper is to make the mathematical concepts interesting to the economists. An attempt has been taken here to discuss the problems in some detailed mathematical analysis in an elegant manner.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indifference Hypersurface, Lagrange Multiplier, Utility Function, Reciprocity and Substitution Theorems, Slutsky Equation.
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

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