Marshallian

Marshallian refers to the work and approach of the British economist Alfred Marshall (1842–1924) and the school of neoclassical economics he helped shape. In economics, the term indicates concepts, models, or methods that originate in or are associated with Marshall’s framework, particularly in microeconomics and price theory.

A central usage is Marshallian demand, the ordinary, uncompensated demand function D(p, m) that results from maximizing a consumer’s utility subject to a budget constraint. This demand reflects both substitution effects and income effects of price changes and is distinguished from Hicksian (compensated) demand, which holds utility constant. The Marshallian framework also emphasizes partial equilibrium analysis, where the price and quantity in a single market are determined while other markets are treated as fixed. The elasticity of demand—how responsive quantity demanded is to price changes—is a key tool in Marshallian analysis.

Historically, Marshall’s Principles of Economics popularized partial-equilibrium analysis and the use of demand and supply curves to explain price formation, consumer behavior, and resource allocation. His work helped formalize marginal analysis in everyday economic choices and contributed to the development of microeconomic theory.

In contemporary usage, "Marshallian" is often used to distinguish traditional microeconomic analysis from other approaches such as general equilibrium theory or behavioral economics. Some criticisms note that the Marshallian framework relies on ceteris paribus assumptions and simplified market settings that may not fully capture the complexities of modern economies.