income effect

In other words his purchasing power is called the income effect.

The income effect is a phenomenon observed through changes in purchasing power.

This ruled out income effects as an explanation for the endowment effect.

In addition, purchasing power from the price decline increases ability to buy (the income effect).

However, this price changes due to both the income effect and the substitution effect.

One must also consider the income effect, which for tax policy purposes often needs to be assumed to cancel out in the aggregate.

The negative slope of the demand curve is due to the substitution and income effects.

This is known as the income effect.

The book decomposes the change into the substitution effect and the income effect.

This explains the negative income effect on consumption.

Price and income effects on housing demand are demonstrably important but they are ignored in structure plans.

The pure income effect is shown as the movement from point A to point C in the next diagram.

Indirect rebound effects come about from the income effect as decreased costs enables increased household consumption of other goods and services.

Initially, the income effect of the taxes makes the individual 'buy' less of all normal goods including leisure.

An example would be the hypothetical separation of the income effect and the substitution effect of a price change, which actually go together.

Thrall introduces a consumption theory of land rent that includes income effects; utility is broadly considered.

If the good is an inferior good, then the income effect will offset in some degree the substitution effect.

Thus, the price effect is the algebraic sum of the substitution effect and the income effect.

To understand what effect this might have on the decision of how many hours to work, you must look at the income effect and substitution effect.

Although the researchers demonstrated the validity of the substitution effect, they found no evidence in their sample of an income effect.

Income effect and price effect deal with how the change in price of a commodity changes the consumption of the good.

A second perspective emphasises the 'income effect'.

However, given the pro-cyclical nature of labor, it seems that the above "substitution effect" dominates this "income effect".

Where it slopes upwards to the left (negative elasticity), the income effect is greater than the substitution effect.

It means that these goods have just "substitution effects" but don't have "income effects".