Market demand curves and Dupuit – Marshall consumers ’ surpluses : a general equilibrium analysis

This paper investigates a claim of Hicks that the area to the left of a market demand curve—calculated by assuming that other markets are in equilibrium—is equal to the aggregate overall Dupuit–Marshall consumers’ surplus together with producers’ surplus in other markets, and extends it to general equilibrium in an economy with a competitive private sector. The usefulness of the result is questioned by considering path independence and the possibility of consistency with a Bergson–Samuelson social-welfare function. In the only interesting possibility, ́ there must be no income effects on non-numeraire goods for each person.  1999 Elsevier Science B.V. All rights reserved.