J. R. Hick's theoretical and practical significance of the decomposition model of income and substitution effects of price changes

The objective of the work is to analyze and consider critically the relevance of decomposition model for price effects in J. R. Hicks' works, the famous British economist. It is about the analysis of price change effects on consumer choice optimization, attainable use and optimal consumption structure. Starting from Hicks' conception of real consumer income, the models of limiting the total price effects by means of the Hicks method of income effect changes and the method of compensation income changes are analyzed. At the end of the work, conclusions and evaluations of the importance and the possibilities of implementation of the Hicks models are given.