King's rule
The Kingsche rule (also King'sche rule , English [Gregory] King's Law [of demand] or King-Davenant law ) is probably due to the English statistician Gregory King (1648-1712) back and says that a low supply fluctuation disproportionate in food Price or revenue fluctuations result. At the time, King referred to declines in the grain harvest, which resulted in disproportionate increases in grain prices, and stated the corresponding price increases for various decreases.
However, it is debatable whether such a rule has general validity or how precise it is. The crop failure of a single country certainly doesn’t have as much of an impact today as it used to.
It is also uncertain whether the rule actually only goes back to King or whether Charles Davenant (1656–1714), in whose publications this rule appears for the first time with reference to King's statistical data, also developed it.
literature
- G. Heberton Evans, Jr .: The Law of Demand - The Roles of Gregory King and Charles Davenant . In: The Quarterly Journal of Economics , Vol. 81, No. 3, August 1967, pp. 483-492 (English).
Individual evidence
- ↑ King's rule. In: Wissen.de . Retrieved January 25, 2019 .