marginal utility of money

the increase in satisfaction (UTILITY) that an individual derives from spending one incremental unit of MONEY on goods or services.

References in periodicals archive ?

However, judging the subjective marginal utility of money today necessarily entails knowing yesterday's objective purchasing power of money, that is, the inverse of the structure of money prices in all their particularity.

THE INCOME EFFECT RECONSIDERED

marginal utility of money, redistribution from high-income to low-income

DOES THE INCOME TAX CAUSE PARENTS TO SPEND TOO MUCH TIME WITH THEIR CHILDREN? UNPACKING MIRRLEES

Since the marginal utility of money diminishes (like for any other good), it was argued that income redistribution increases net utility in society.

John Hicks and the beauty of logic

* Sacrifice theory and the marginal utility of money. Taxes are a burden on society that should be shared in an equitable manner.

The inequity of the progressive income tax

Further tempting detours on this road may lead to suppositions about a stable relation between "utility" and income (the "diminishing marginal utility of money") and about the addition and subtraction of different people's "utilities," both suppositions permitting irresistibly attractive conclusions about "maximizing aggregate social utility" and others of the same family.

Suckers, punters, pathbreakers: when homo oeconomicus is selflessly selfish

This equation describes a curve that shows diminishing marginal utility of money and that people do not have linear utility (Samuelson, V.

Maurice Allais: a review of his major works, a memoriam, 1911-2010

It's not that the more you earn, the happier you are, she says, confirming what the theory of declining marginal utility of money says.

Residents describe how it all adds up

17-8, 20, 31-2, 38-40); and, secondly, by interpreting Marshall's assumption about the 'constancy of the marginal utility of money' as if it were formally equivalent, in the Walrasian-Paretian framework, to the assumption that 'income effects can be neglected' (p.

Marshall vs. Walras on equilibrium and disequilibrium

Their solution is to impose a correction to the analysis to reflect the fact that the marginal utility of money declines as income rises.

Regulatory tool

By dividing the utility of the emotions over the marginal utility of money (M) (14), an Emotional Coefficient (EC) displays the additional revenue in money terms a decision-maker gets due to emotions (see equation two).

Emotions and foreign direct investment: a theoretical and empirical exploration

(17.) For example, if the marginal utility of money decreases and the social welfare function is additive--the classic utilitarian view--then a more equal distribution of wealth will always be favored.

Fairness Versus Welfare

The second premise is that a unit of money at a lower level of income will increase utility to a greater degree than the same unit of money at a higher level of income (or that the marginal utility of money is decreasing).

The thrill of simplicity, the agony of realism: an assessment of the sport of utility theory