Lucas supply function
E455410
The Lucas supply function is an economic model developed by Robert Lucas Jr. that explains how producers’ output decisions respond to perceived price changes under imperfect information, forming a key component of new classical macroeconomics.
All labels observed (1)
| Label | Occurrences |
|---|---|
| Lucas supply function canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T4586442 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Lucas supply function Context triple: [Robert Lucas Jr., notableConcept, Lucas supply function]
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A.
Hicksian demand
Hicksian demand is a concept in microeconomics that describes how a consumer’s demand for goods changes when prices vary while holding utility (satisfaction) constant, often used in welfare and consumer theory.
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B.
The Theory and Measurement of Demand
The Theory and Measurement of Demand is a foundational economics book by Henry Schultz that rigorously develops statistical and mathematical methods for estimating consumer demand.
-
C.
Hotelling’s lemma
Hotelling’s lemma is a result in microeconomics that links a firm’s profit function to its supply and factor demand functions via partial derivatives.
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D.
Frisch elasticity of labor supply
The Frisch elasticity of labor supply is an economic measure that captures how responsive individuals’ labor supply is to changes in wages when their expected lifetime wealth is held constant.
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E.
Walrasian market-clearing framework
The Walrasian market-clearing framework is a general equilibrium model in which perfectly competitive markets continuously adjust prices so that supply equals demand in all markets simultaneously.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Lucas supply function Target entity description: The Lucas supply function is an economic model developed by Robert Lucas Jr. that explains how producers’ output decisions respond to perceived price changes under imperfect information, forming a key component of new classical macroeconomics.
-
A.
Hicksian demand
Hicksian demand is a concept in microeconomics that describes how a consumer’s demand for goods changes when prices vary while holding utility (satisfaction) constant, often used in welfare and consumer theory.
-
B.
The Theory and Measurement of Demand
The Theory and Measurement of Demand is a foundational economics book by Henry Schultz that rigorously develops statistical and mathematical methods for estimating consumer demand.
-
C.
Hotelling’s lemma
Hotelling’s lemma is a result in microeconomics that links a firm’s profit function to its supply and factor demand functions via partial derivatives.
-
D.
Frisch elasticity of labor supply
The Frisch elasticity of labor supply is an economic measure that captures how responsive individuals’ labor supply is to changes in wages when their expected lifetime wealth is held constant.
-
E.
Walrasian market-clearing framework
The Walrasian market-clearing framework is a general equilibrium model in which perfectly competitive markets continuously adjust prices so that supply equals demand in all markets simultaneously.
- F. None of above. chosen
Statements (46)
| Predicate | Object |
|---|---|
| instanceOf |
economic model
ⓘ
macroeconomic theory component ⓘ |
| addresses | expectations and information in macroeconomic fluctuations ⓘ |
| assumes |
agents have rational expectations about aggregate variables
ⓘ
agents know the structure of the economy ⓘ information is imperfect and dispersed ⓘ market-clearing prices ⓘ no systematic money illusion but temporary misperceptions ⓘ producers observe nominal prices but not the aggregate price level perfectly ⓘ shocks are partly unobservable when decisions are made ⓘ |
| basedOn |
imperfect information
ⓘ
rational expectations ⓘ |
| componentOf | Lucas misperceptions model ⓘ |
| contrastsWith | Keynesian aggregate supply with nominal rigidities ⓘ |
| coreIdea | producers confuse relative price changes with aggregate price level changes ⓘ |
| criticizes | traditional Phillips curve as a stable trade-off ⓘ |
| describes | relationship between output and unexpected price changes ⓘ |
| developedBy | Robert Lucas Jr. ⓘ |
| explains |
how producers respond to perceived price changes
ⓘ
output deviations from natural level due to information problems ⓘ |
| field |
macroeconomics
ⓘ
new classical macroeconomics ⓘ |
| historicalContext | developed in the 1970s ⓘ |
| implies |
anticipated monetary policy is neutral with respect to real output
ⓘ
only unanticipated monetary shocks affect real output in the short run ⓘ |
| influenced | modern macroeconomic modeling of supply ⓘ |
| influencedBy |
Friedman’s expectations-augmented Phillips curve
ⓘ
linked to:
Phillips curve framework
|
| inMacroeconomicModel | aggregate supply curve with expectations term ⓘ |
| mathematicalForm | y = y* + α(p - E[p]) ⓘ |
| namedAfter | Robert Lucas Jr. ⓘ |
| parameter | α (sensitivity of output to unexpected price changes) ⓘ |
| relatedConcept |
monetary neutrality in the long run
ⓘ
rational expectations revolution ⓘ signal extraction problem ⓘ unanticipated monetary shocks ⓘ |
| relatesTo | short-run aggregate supply ⓘ |
| roleInTheory | foundation for new classical aggregate supply analysis ⓘ |
| supports | policy ineffectiveness proposition under rational expectations ⓘ |
| usedFor |
analyzing effects of monetary policy under rational expectations
ⓘ
explaining short-run non-neutrality of money with imperfect information ⓘ |
| usedIn |
Lucas islands model
ⓘ
new classical business cycle theory ⓘ |
| variable |
E[p] (expected price level or expected log of price level)
ⓘ
p (actual price level or log of price level) ⓘ y (actual output) ⓘ y* (natural level of output) ⓘ |
How these facts were elicited
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Instruction
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Input
Subject: Lucas supply function Description of subject: The Lucas supply function is an economic model developed by Robert Lucas Jr. that explains how producers’ output decisions respond to perceived price changes under imperfect information, forming a key component of new classical macroeconomics.
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.