Showing papers on "Consumption (economics) published in 1975"
TL;DR: In this article, the authors consider an economy in which individuals receive both a fixed endowment of real income and nominal transfer payments in the form of bills printed by the government during each period of life and develop a simple model which sharpens understanding of the forces that determine the equilibrium path of the price level and money income over time.
253 citations
TL;DR: The textbook theory of tariffs, and their converse, the movement to freer trade, has more elements than we need for the nineteenth century, but also lacks some as mentioned in this paper.
Abstract: The textbook theory of tariffs, and their converse, the movement to freer trade, has more elements than we need for the nineteenth century, but also lacks some. In the usual comparative statics, a tariff may be said to have ten effects: on price, trade, production (the protective effect), consumption, revenue, terms of trade, internal income distribution, monopoly, employment and the balance of payments.
243 citations
TL;DR: In this article, the authors considered differentiated periods of life work and retirement and investment in capital goods and derived the conditions for an optimum intermediate population growth rate and proved by serendipity theorem that under laisse faire private saving would suffice to support this growth rate state if necessitated by biological and cultural factors.
Abstract: The theory of optimum population concerned with the stationary plateau of population considers limitations of unaugmentable land and economics of scale and maximizes per capita output and consumption. In the usual version of the growth model the slower the rate of exponential growth the higher the level of steady-state consumption. The present analysis considers differentiated periods of life work and retirement and investment in capital goods and derives the conditions for an optimum intermediate population growth rate. The analysis proves by serendipity theorem that under laisse faire private saving would suffice to support this growth-rate state if necessitated by biological and cultural factors. (AUTHORS MODIFIED)
226 citations
TL;DR: In this article, the authors investigated whether and how the distribution of income affects the fraction of disposable income which is consumed, and they found that a slight generalization of the permanent income or "life-cycle" model of consumption makes each individual's lifetime marginal propensity to consume a fraction of his lifetime disposable resources unless two taste parameters are equal.
Abstract: This paper investigates whether and how the distribution of income affects the fraction of disposable income which is consumed. It is shown that a slight generalization of the permanent income or "life-cycle" model of consumption makes each individual's lifetime marginal propensity to consume a fraction of his lifetime disposable resources unless two taste parameters are equal. In considering what this implies for the aggregate consumption function, the tenuous connection between theoretical constructs and observed facts is stressed. Previous empirical work on the subject is criticized for failing to define properly either "income distribution" or "consumption," and a new test, based on the theory, is outlined. Because of data limitations, a number of compromises with this ideal test must be made, and several alternative models are estimated. On the whole, they suggest that equalizing the distribution of income would either leave aggregate consumption unchanged or diminish it slightly.
194 citations
TL;DR: The results suggest that associations identified in this type of investigation should be interpreted with great caution and need not necessarily reflect causal relationships but rather suggest avenues along which further research might proceed.
172 citations
TL;DR: The authors assesses the importance of this price e.g., the "price of such gifts" is less than the price of other consumption, and assesses how important this price is.
Abstract: Because charitable contributions are deductible in defining taxable income, the "price" of such gifts is less than the price of other consumption. This paper assesses the importance of this price e...
149 citations
Posted Content•
TL;DR: In this paper, the authors attempt to determine empirically the amount by which an increase in wealth is caused by schooling as distinguished from the amount that the demand for schooling increases as the result of an increased in wealth.
Abstract: It can be claimed that education is simply a normal consumption good and that like all other normal goods, an increase in wealth will produce an increase in the amount of schooling purchased. Increased incomes are associated with higher schooling attainment as the simple result of an income effect. If this is so, schooling increases an individual's wealth only by the consumption value of the good, since it is a non-saleable asset. This paper will attempt to determine empirically the amount by which an increase in wealth is caused by schooling as distinguished from the amount by which the demand for schooling increases as the result of an increase in wealth.
128 citations
TL;DR: In this article, a series of experimental studies of consumer demand behavior were conducted using laboratory animals as subjects, showing that laboratory animals will change consumption patterns in response to changes in the budget set, consuming more of the lower priced commodities and less of the higher priced commodities.
Abstract: Using laboratory animals as subjects, two series of experimental studies of consumer demand behavior are reported. The experiments show that laboratory animals will change consumption patterns in response to changes in the budget set, consuming more of the lower priced commodities and less of the higher priced commodities. Large rotations in the budget line for essential commodities resulted in severe disruption of consumer behavior. The experiments demonstrate the feasibility of using non-human subjects in laboratory studies of economic behavior.
123 citations
01 Mar 1975
TL;DR: In this article, the energy cost of goods and services is computed and applications are discussed, and applications range over consumption options for individuals, business, industry, and government; from the total energy costs of bus versus auto travel to the national import-export balance.
Abstract: The energy cost of goods and services is computed, and applications are discussed. The method utilizes the data base of input-output economics, but entails additional analysis. Applications range over consumption options for individuals, business, industry, and government; from the total energy cost of bus versus auto travel to the national import-export balance.
92 citations
TL;DR: In this paper, the authors examine lotteries in terms of broad considerations of economic efficiency and incidence and show that a state lottery simultaneously creates a consumption good and taxes that good, and the creation acti
Abstract: This paper examines lotteries in terms of broad considerations of economic efficiency and incidence A state lottery simultaneously creates a consumption good and taxes that good The creation acti
TL;DR: In this paper, a model of a housing market in which dwelling units are constructed for relatively high income families and then gradually become available to lower income groups as they depreciate in quality and price is presented.
TL;DR: Despite some experience to the contrary, multinational firms may increasingly be prepared to sell more labour-intensive technologies and more essential-intensive products to less developed countries as mentioned in this paper, despite the fact that the role of multinational corporations in the future sale of more appropriate technologies will be concentrated in manufacturing for export.
TL;DR: In this paper, the authors show that in the absence of consumption externalities, and allowing " part-time " clubs, a system of fixed charges exists to decentralize the optimal pattern of production (or club membership).
Abstract: unify these various approaches. We establish under what conditions a system of fixed charges exists to decentralize the optimal pattern of production (or club membership), characterize that system of charges and explore the relationship between the form of the common cost function and the optimal pattern of activities. More precisely, we show that in the absence of consumption externalities, and allowing " part-time " clubs,
TL;DR: The concept of demarketing as discussed by the authors is a marketing orientation that aims to shape demand to conform with long-term objectives rather than blindly engineer increases in sales without regard to such objectives.
Abstract: IN contemporary management, growth is implicitly a central element of successful marketing practice. This philosophy has developed in a marketing environment in which it was assumed that there would always be more consumption potential that could be serviced by marketing organizations. However, the continued growth of consumption in the early 1970s, together with more recent inflationary pressures and materials shortages, have tested the marketing system's ability to fully meet its objective of achieving customer satisfaction and long-term profitability. The development of a marketing orientation specific to this new marketing environment is the basis of the concept of demarketing.1 This concept maintains that the marketer's task is to shape demand to conform with long-term objectives rather than blindly engineer increases in sales without regard to such objectives. Interest in demarketing has rapidly increased internationally as companies worldwide have faced the decision problems associated with raw material or product shortages.2 These problems includethe nature and level of advertising that can be justified, the role of the salesman, the clients who are to be dropped, the desire to alter product pricing to equate supplies and demand, the allocation of limited supplies of products to distributors, and bases for product substitution. Business concern with these problems has been accentuated by the speed with which the situation developed and the wide range of company activities affected by these changes.' Decision making in times of severe change presents substantial problems to marketers. Specifically, two questions need to be answered: What is the relevant marketing orientation for developing strategy? What strategy alternatives are available for marketing mix elements? This article attempts to provide answers to these questions and to apply them to help marketing managers position demarketing strategy relative to overall marketing strategy.
TL;DR: In this paper, the authors analyzed consumption expenditure of the masses by making use of the Household Income and Expenditure Survey data for the years 1963-64, 1966-67, 1968-69 and 1969-70.
Abstract: Despite great development efforts made in Pakistan1 during the
last twenty-five years, the extent of poverty in the country has
remained shockingly great and the living standards of the masses
alarmingly low. The interest in the study of the mass poverty problem is
of recent origin in Pakistan. Earlier studies have examined the problem
mainly from the point of view of an equit¬able distribution of income
and wealth and their analysis has been principally based on their
relative shares. However, one study [6] deals with the specific problem
of mass poverty in Pakistan, taking into account the absolute levels.
The study, done by Naseem, analyses consumption expenditure of the
masses by making use of the Household Income and Expenditure Survey [9]
data for the years 1963-64, 1966-67, 1968-69 and 1969-70. Since then,
many changes have occurred in Pakistan's economy as a result of which
the per capita GNP declined during the last two years covered by this
study, viz. 1970-71 and 1971-72. Since expenditure, as a measure of
welfare, may not be very appropriate in a year in which income declines,
for part of the expenditure might be financed by dissavings and sales of
assets, the analysis for this paper is based on both expendi¬ture and
income levels. Moreover, as the estimation of poverty levels, to a great
extent, involves, besides other things, value judgment, it is more
appro¬priate to specify a range of income and expenditure values rather
than specific values. For this reason, the study makes use of four
levels of income and expenditures, instead of the two adopted in
Naseem's study [6], below each of which the number of the poor is
estimated.
Patent•
07 Apr 1975
TL;DR: In this article, the authors present a system for monitoring and displaying the consumption of energy by measuring the actual energy consumed and comparing the measured energy consumption with an ideal or desired energy consumption.
Abstract: A system for monitoring and displaying the consumption of energy by measuring the actual energy consumed and comparing the measured energy consumption with an ideal or desired energy consumption. The desired energy consumption data may be based upon actual operations or may be generated by ideal consumption characteristics. In some instances, the ideal figures may be modified to compensate for variations in external conditions.
TL;DR: Estimates can be derived on the production and consumption of alcoholic beverages during the 1957-71 period, including urban and rural consumption, expenditures, tax revenues, imports and exports and use of agricultural products.
Abstract: The Soviet government has published few official statistics on alcoholic beverages. Using Soviet statistical, commerical and technical sources, however, estimates can be derived on the production and consumption of alcoholic beverages during the 1957-71 period, including urban and rural consumption, expenditures, tax revenues, imports and exports and use of agricultural products.
08 Sep 1975
TL;DR: In this paper, the authors consider a multiperiod additive utility, optimal consumption model with a riskless investment and a stochastic labor income and show that consumption decreases when we go from any sequence of distribution functions representing labor income to a more risky sequence.
Abstract: We consider a multiperiod, additive utility, optimal consumption model with a riskless investment and a stochastic labor income. The main result is that for utility functions belonging to the set F, consumption decreases when we go from any sequence of distribution functions representing labor income to a more risky sequence. It is shown that a concave utility function belongs to F if and only if its first derivative exists everywhere and is convex.
TL;DR: In this article, the authors estimate the price response of marketable surplus and home consumption for a given output following harvest following harvest, using a sample survey results for three consecutive years.
Abstract: Despite its critical importance in the design of agricultural price policy in developing countries, the price response of marketable surplus for a subsistence crop has remained a major unsettled issue. Ample evidence is available that subsistence farmers adjust their production in response to price changes (Krishna 1967). However, few empirical estimates exist on the price response of farm households in allocating the produced output between home consumption and market sale, although there have been a number of indirect inferences (Behrman; Krishna 1962, 1965; Krishnan; Mangahas, Recto, and Ruttan; Mubyarto). Moreover, limited attempts to estimate the price response directly have yielded mutually conflicting results (Bardhan; Bardhan and Bardhan; Haessel). Difficulty in the empirical estimation of the price response of the marketable surplus and home consumption for a given output following harvest stems simply from the unavailability of adequate data which relate marketable surplus and/or home consumption to price. In this study we attempt to fill this critical gap by estimating the price responses for both the marketable surplus and that portion retained for home consumption using sample survey results for three consecutive years.
TL;DR: In this article, a recursive quadratic programming model of the North American pork sector is constructed to explain spatial and temporal variations in the sector and to evaluate the repercussions of policy changes.
Abstract: A quarterly recursive quadratic programming model of the North American pork sector is constructed to explain spatial and temporal variations in the sector and to evaluate the repercussions of policy changes. The model incorporates econometric supply, demand for consumption and demand for storage equations for Eastern and Western Canada and the United States. It is then run over a forty‐one quarter period to evaluate its ability to simulate the sector. A policy experiment is conducted which assesses a change in tariff policies between Canada and the United States to illustrate the model's application for policy analysis.
TL;DR: A comprehensive theoretical framework is developed by constructing a model of foraging behavior and population growth in terms of energetic cost-gain functions and comparing the population growth of "optimal foragers" with other strategies in the model yields a more rapid approach to equilibrium.
Abstract: Numerous studies of natural populations have generated data relating foraging activities, the quantity and quality of available food resources, and population dynamics. In order to interpret these data we develop a comprehensive theoretical framework by constructing a model of foraging behavior and population growth in terms of energetic cost-gain functions. With total energy costs and gains of foraging viewed as functions of the quantity of food consumed per unit time, a simple graphical model indicates a range of profitable consumption rates. The organisms's choice of feeding rates within this range depends upon the foraging strategy adopted. A foraging strategy that maximizes net energy gain results in a higher consumption rate than a strategy that minimizes the time spent foraging. As the population increases, energy costs of foraging may rise, and this results in a reduction of feeding rates by "energy maximizers" while "time minimizers" increase their feeding rate. As a population approaches its carrying capacity, the consumption rates of energy maximizers and time mini- mizers converge. An explicit dynamic model indicates the relationships between the population growth and the energetic parameters underlying its foraging activities. For example, the biotic potential, r, is found to be proportional to the maximum net gain from a unit of resource and to the equilibrium consumption rate. Comparing the population growth of "optimal foragers" with other strategies in the model the optimal foraging strategy yields a more rapid approach to equilibrium.
TL;DR: In this paper, the effects of inflationary expectations within an extended inventory model of the determination of optimal money holdings and commodity inventories were evaluated. And the authors showed that the effect of inflation on money holdings depend critically on whether the household holds part of its savings balance as earning assets.
Abstract: This paper evaluates the effects of inflationary expectations within an extended inventory model of the determination of optimal money holdings and commodity inventories. One important innovation is to introduce into the consumption bundle a commodity which is purchased less frequently than income is received. A second innovation is to consider household use of earning assets as a store of savings balances rather than working balances. The analysis shows that the effects of inflationary expectations on optimal commodity inventories and money holdings depend critically on whether the household holds part of its savings balance as earning assets. For example, if the household holds its savings balance only as money, and if the real rate of return on earning assets is constant, an increase in the expected rate of inflation would induce a reduction in total money holdings and also, somewhat surprisingly, a reduction in total commodity inventories.
TL;DR: In this paper, the authors present evidence to support the idea that the consuming public has demonstrated a capacity to buy products on a voluntary basis, which is observable in the key research projects quoted in the text.
Abstract: This paper reviews the literature devoted to products that have been identified as having an ecological orientation. Specifically, the author presents evidence to support the idea that the consuming public has demonstrated a capacity to buy products on a voluntary basis. This voluntary consumption behavior is observable in the key research projects quoted in the text. While there is mixed evidence to support the hypothesis that consumers will voluntarily alter their buying behavior for the benefit of society in general, there are a number of positive and identifiable ways to elicit broader participation in voluntary consumption behavior. This paper makes a numbers of suggestions with respect to how important information is in the process of voluntary consumption and suggests ways to simplify the information process.