Retrospectives

The Law of Diminishing Returns

Bibliographic Data

ID4030247
AuthorsStanley L Brue (Professor of Economics, Pacific Lutheran University, Tacoma, Washington., corresponding author)
Year1993
Volume7
Issue3
Pages185-192
Publication date1993-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic Perspectives (JOURNAL)
Journal identifiersISSN: 0895-3309 • E-ISSN: 1944-7965
PublisherAmerican Economic Association (PUBLISHER • US)
DOI10.1257/jep.7.3.185
OpenAlexW2064766274
LanguageEN
Citations received13
References cited7

From introductory economics to theoretical papers, the law of diminishing returns is a part of every economist's tool kit. But the evolution of this law in the history of economic analysis reveals more complexity than is perhaps generally understood. Even among those most responsible for its evolution, the law has been loosely defined, and many so-called "proofs" of the law have been weak and incomplete. Moreover, those who expounded the law and its economic implications rarely offered empirical evidence to support it. In fact, economists have offered alternative explanations for rising short-run marginal cost curves and other implications of the law of diminishing returns. This last point raises an interesting question: Have economists used the law of diminishing returns simply for convenience, or is the law fundamental to economic analysis

Economics · Law and economics · Marginal cost · Marginal utility · Mathematical proof · Neoclassical economics · Political science · Complex Systems and Time Series Analysis · Economic theories and models · Law · Mathematics

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