Description
incomeEffect = -quantity*incomeDerivative, the income contribution to the good's own-price derivative under this sign convention.
An economic model specifies how quantities, prices or marginal values relate under stated assumptions. A derivative, reaction function or first-order-condition term is a local model object rather than an empirical finding or complete equilibrium solution.
incomeEffect = -quantity*incomeDerivative, the income contribution to the good's own-price derivative under this sign convention.
When to use this tool
Use Slutsky Income Effect Single Good when checking one explicit theoretical economic-model relationship.
How to use the tool and how it works
- Enter quantity, incomeDerivative. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read incomeEffect. Use the output convention below.
Require nonnegative quantity. incomeEffect = -quantity*incomeDerivative, the income contribution to the good's own-price derivative under this sign convention.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| quantity | Quantity | Required. Finite number; minimum 0. |
| incomeDerivative | Income Derivative | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| incomeEffect | Income Effect | Required. Finite number. |
{
"input": {
"quantity": 4,
"incomeDerivative": 0.2
},
"output": {
"incomeEffect": -0.8
}
}Limitations and assumptions
- The derivative is quantity per monetary income unit. This is one Slutsky term, not complete demand estimation or the full price effect.
- 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 a complete model, defensible parameter estimates and suitable identification before drawing empirical or policy conclusions.
References
Similar or alternative tools
- Public Good Lindahl Share Balance
sumBenefits is the sum; residual = sumBenefits-marginalCost.
- Giffen Income Substitution Sign Gap
totalPriceDerivative = substitutionEffect+incomeEffect; giffenSign is true only when the total is positive.