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’ 169 Given Sa: = $600 = Total dollars spent by Case 2. From tables ¢; = 509, = 9 for food by Case 2. Multiplying, S:¢2 = $300 = dollars spent for food by Case 2. Given Fy; = $1 per “Ib.” = Index No. of food prices, Case 2. Measure of food, Case 2. Dividing, S58 _ 300 “Ibs.” 5 Nn _ 300 “Ibs. $1.33 per “r 2400 409, $1000 Same as = Measure of food, Case 1. = Index No. of food prices, Case 1. = dollars spent for food by Case 1. % for food by Case 1. Total dollars spent by Case 1. Likewise, to get Ss, the total spent in Case 3, we proceed as follows: Given S; = $600 From tables ps = 209, Multiplying, Sap» — $120 Given R; — $1 per sq. ft. Sapa Dividing ~~ “p-= 120 sq. ft Same as = 2. = 120 sq. ff 3 $3 per sq. ft. Tay 7 = Total dollars spent by Case 2. = 9, for rent by ro 2. dollars spent for rent by Case 2. Index No. of rent prices, Case 2. Measure of Housing, Case 2. = Measure of Housing, Case 3. Given Multiplying, From tables, Dividing, = Index No. of rent, Case 3. = dollars spent for rent by Case 3. 9 for rent, Case 3. ral dollars spent, Case 3. || Comparison of Case 1 and Case 3 We have now found S; and S; through the intermediation of S;. We note that both 8; and Sz are in the same country, Oddland, and under the same prices, F; (or its equal F3) of food and R; (or its equal R3) of house rent. Thus we have four results from our four chains of cal- culations: S:=$1,000; Sa=—81.440: a} LE Wi=.75 Ws— 331k According to these figures (which, of course, are based on hypothetical rather than actual statistics for the F's, R’s, ¢’s, p’s), if one family in Oddland has an income of $1,000 and another has 449% more, the latter's valuation of each dollar is 55 5/9% less. Chart IT shows this result by two points, one for Case 1, the “latitude” and “longitude” of which are respectively income and want-for-one-more dollar (namely S:=8$1000, W,=.75

Access restriction

Copyright

fullscreen: Economic essays

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation