Description
Add supplied signed income and substitution effects.
Economic scalar terms depend on price/cost units, denominators, currency direction and the distinction between supplied scenarios and estimated behavior. A price-based margin differs from a cost-based markup, while a constant-revenue construction does not estimate demand. Local taxes, rebates and effect sums retain their stated accounting assumptions.
Add supplied signed income and substitution effects.
When to use this tool
Use Income Effect Substitution Effect Signed Sum when you already have suppliedIncomeEffect, suppliedSubstitutionEffect and need to add supplied signed income and substitution effects.
How to use the tool and how it works
- Enter suppliedIncomeEffect, suppliedSubstitutionEffect. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read totalSignedEffect. Use the output convention below.
Return suppliedIncomeEffect+suppliedSubstitutionEffect.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| suppliedIncomeEffect | Supplied Income Effect | Required. Finite number. |
| suppliedSubstitutionEffect | Supplied Substitution Effect | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| totalSignedEffect | Total Signed Effect | Required. Finite number. |
{
"input": {
"suppliedIncomeEffect": 3,
"suppliedSubstitutionEffect": -5
},
"output": {
"totalSignedEffect": -2
}
}Limitations and assumptions
- Units and decomposition convention must match. No effects, preferences, compensated demand or causal response are estimated.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete budget, demand, cost and applicable rule definitions for an economic conclusion. Estimate and validate the actual model when effects or responses are needed; one signed wedge, supplied share or algebraic identity does not establish behavior or policy outcomes.
References
Similar or alternative tools
- Marginal Cost Price Markup Denominator
Calculate a signed price-cost markup under a chosen denominator.
- Import Price Border Domestic Wedge
Convert a supplied border price and measure its domestic price wedge.