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Samuelson and Consumption Theory

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Samuelson and Neoclassical Economics

Part of the book series: Recent Economic Thought ((RETH,volume 1))

Abstract

The task of reviewing a body of work as prodigious as Paul Samuelson’s is so awesome that I confine myself in this essay and its sequel (Chapter 11) to only a small portion of his work: consumption theory and welfare economics. In the present paper I take up two branches of consumption theory that stem from quite different traditions: (1) revealed preference and the integrability problem and (2) the measurement of individual welfare. I try to show how Samuelson’s contributions have led to a complete transformation of thought in both branches and have laid the basis for a synthesis of the two, allowing for the construction of utility functions and welfare measures that are firmly based on market observations of individual demand behavior.

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Chipman, J.S. (1982). Samuelson and Consumption Theory. In: Feiwel, G.R. (eds) Samuelson and Neoclassical Economics. Recent Economic Thought, vol 1. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-7377-0_2

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  • DOI: https://doi.org/10.1007/978-94-009-7377-0_2

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