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Subject:
Who Coined the Terms "Inferior good" and "Normal Good" ?
Category: Business and Money > Economics Asked by: kous-ga List Price: $4.00 |
Posted:
28 Jan 2005 12:24 PST
Expires: 08 Feb 2005 10:09 PST Question ID: 464958 |
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There is no answer at this time. |
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Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: bowler-ga on 29 Jan 2005 07:27 PST |
Interesting but no name is given: "Some years ago, a whiz kid in the World Bank observed that university graduates earn substantially more than others. As a corollary, he postulated, higher education is not a public good the way it was thought to be. He coined the evocative description "inferior good" for higher education..." http://www.the-week.com/23mar16/events11.htm |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: kous-ga on 29 Jan 2005 15:09 PST |
Well thanks for searching I actually did stumble across that website and was debating wheter or not to include it in my question as help. That was as close to answering the question as I was able to come as well. I'm sure the answer is out there somewhere, maybe increasing the price would help me come to a conclusion??? |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: frde-ga on 29 Jan 2005 19:25 PST |
Whoever it was certainly knew about the 'Income Elasticity of Demand' Marshall credited Giffen with 'Giffen Goods' http://en.wikipedia.org/wiki/Giffen_good "Marshall wrote in the 1895 edition of Principles of Economics: As Mr. Giffen has pointed out, a rise in the price of bread makes so large a drain on the resources of the poorer labouring families and raises so much the marginal utility of money to them, that they are forced to curtail their consumption of meat and the more expensive farinaceous foods: and, bread being still the cheapest food which they can get and will take, they consume more, and not less of it." Note: not a mention of 'Inferior Goods', 'Normal Goods' or 'Luxury Goods' http://en.wikipedia.org/wiki/Alfred_Marshall The interesting bit is the 'Theoretical Contributions' section "Theoretical contributions Marshall's economics were an extension of the work of John Stuart Mill, Adam Smith, and David Ricardo. He downplayed the contributions of certain other economists to his work, such as Vilfredo Pareto and Jules Dupuit, and only grudgingly acknowledged the influence of William Jevons himself. Marshall's influence on codifying economic thought is difficult to deny. He was the first to rigorously attach price determination to supply and demand functions; modern economists owe the linkage between price shifts and curve shifts to Marshall. Marshall was an important part of the "marginalist revolution;" the idea that consumers attempt to equal prices to their marginal utility was another contribution of his. The price elasticity of demand was presented by Marshall as an extension of these ideas." My bet is the same person coined the 'Inferior Goods' phrase as 'Income Elasticity of Demand' Alfred Marshall - The Principles of Economics (1890) http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/marshall/prin/index.html In Book Three he talks about 'Inferior Tea' and 'Inferior Joints' - yet again not 'Inferior Goods' - while he is talking about price elasticity he seems aware of income effects |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: kous-ga on 31 Jan 2005 21:48 PST |
frde, Looks like you did quite an extensive search and your conclusion seeming to be Alfred Marshall is correct in my opinion. I do need definitive proof that it was him from a reliable source but if you'd like to claim the answer be my guest. I think thats as close as anyone will possibly get through an internet search. Thanks |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: frde-ga on 01 Feb 2005 04:25 PST |
I suspect it was not Marshall - rather someone summarizing his ideas - a bit like Hicks with Keynes I'm not a researcher - just one of what they call the 'peanut gallery' Your question got me interested |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: kous-ga on 01 Feb 2005 07:45 PST |
I was quite sure it was Marshall after realizing he credited Robert Giffen with 'Giffen Goods' which is a speciific type of inferior good. So the concept of inferior goods must have been present at this time. Think I might have to research this the old fashion way and hit the books. Your help is appreciated though even more soon now knowing that you're not a researcher. Haha, who refers to you guys as the 'peanut gallery'? Thats pretty funny. Hope its not the researchers, you've been more help then they have! |
Subject:
Re: Who Coined the Terms "Inferior good" and "Normal Good" ?
From: frde-ga on 02 Feb 2005 00:23 PST |
Well - that is crux of the problem - Marshall did not actually use the phrase 'Giffen Goods' |As Mr. Giffen has pointed out, ...| There is a big difference between describing a phenomenon - and giving it a snappy title. I have got a hunch that the phrase might possibly have been used by someone describing Indifference Curves I think the 'peanut gallery' title is self bestowed - a sort of self deprecating .... snappy title That was an interesting question, it has made me realize how much I have forgotton. |
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