Economic essays

Bibliographic data

Monograph

Identifikator:: 1753623200

URN:: urn:nbn:de:zbw-retromon-136107

Document type:: Monograph

Title:: Economic essays

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1927

Scope:: viii, 368 S.; Ill., graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: A statistical method for measuring "marginal utility" and testing the justice of a progressive income tax / Irving Fisher

Collection:: Economics Books

A STATISTICAL METHOD FOR MEASURING ‘MARGINAL UTILITY’ 165 market prices and index numbers of these. Let us suppose Fj, the food price level in Oddland, to be a third greater than F. (=1), the food price level in Evenland, or F;—$1.3314 per pound. That 1s, we divide W;F;=1 by F;—1.3314 and obtain W,=.75 of a “wantab.” We have calculated W,, the want-for-one-more dollar of the family called Case 1. This calculation has been made on the basis of data relating to food alone; but, in accordance with well known economic theory, we assume that the want-for-one- more dollar of a given family is the same as the want-for-one- more dollar’s worth of food, clothing, shelter or any other item of expenditure. The above process, or chain of calculations, by which W; is found from W, may be tabulated as follows: Given W; = 1 wantab Given F; = $1.00 Multiplying, we get WF: = 1 wanta. This is same as WF, = 1 wantat Given F, = $1.333 Dividing, we get W; = .75 of a wantab Want-for-one-more dollar in Case 2. Price Index of Food, Case 2. Want-for-one-more pound of food, Case 2. Want-for-one-more pound of food, Case 1. : Price Index of Food, Case 1. Want-for-one-more dollar, Case 1. We have now found W; from W.. We can next find Wj from W. analogously. Briefly: Given W. = 1 want~h PR- pie W.-R, = Want-for-one-more dollar, Case 2. Price Index of Rent, Case 2. Want-for-one-more square foot of housing, Case 2. Want-for-one-more square foot of housing, Case 3. Price Index of Rent, Case 3. = Want-for-one-more dollar, Case 3. 1 wants Same as W3R; = 1 wantab Given Dividing. Wi: = .331 of a wantab wd ta We have now calculated W3, the want-for-one-more dollar of the family called Case 3. This calculation was made from house rent data, but of course represents the want-for-one-more dollar expended for anything else.

Access restriction

Copyright

fullscreen: Economic essays

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation