Download or read book The Influence of Future Income on Present Spending written by Anja Schanbacher and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to economic theory, consumers should boost present consumption when anticipating an income increase and reduce consumption when anticipating a decrease. Yet, many studies have observed a lack of such consumption smoothing. We investigate a psychological factor that can predict when consumers will adjust their current consumption to future income changes: self-continuity, or a sense of identification with and connection to the circumstances of the future self. We propose that consumers tend to perceive lower self-continuity when anticipating an income increase compared to a decrease. Consistent with this notion, we show that consumers are less likely to adjust present discretionary spending upward when anticipating an income increase than to adjust spending downward when anticipating an income decrease. Further, manipulations of self-continuity mitigate the asymmetry: when we induced high self-continuity, consumers adjusted spending to both future income increases and decreases, and when we induced low self-continuity, consumers adjusted present spending neither to future income increases nor to decreases. This demonstrates the role of self-continuity above and beyond other factors potentially contributing to the asymmetry, such as loss aversion and diminishing marginal utility. Six studies involving scenarios as well as real income expectations and behavior support the notion that consumers are more likely to smooth consumption when they perceive a higher sense of self-continuity.
Download or read book Consumption Response to Expected Future Income written by Laurie Pounder and published by . This book was released on 2009 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: consuption "This paper shows empirical evidence in favor of forward-looking household consumption--that consumption today depends directly on household-specific ex-ante expectations of future income. This analysis is unique in using a direct consumption measure combined with an ex-ante household-specific measure of expected future income, constructed from detailed survey and administrative data on Social Security, pensions, and retirement plans. Households with high expected future income spend more today than households that have lower future income but identical current income and net worth. Omitting household-specific future income can cause mis-estimation of key consumption questions. Furthermore, when all three resources for consumption (current income, net worth, and future income) are accounted for, the average propensity to spend out of current income is similar to predictions of optimal consumption under uncertainty in a dynamic stochastic model, although the propensities to spend out of accumulated net worth and expected future income are notably lower in the data than the optimal model. Finally, these data also provide evidence on the effect of risk on consumption while controlling for all three resources. Households with high measured risk aversion consume less out of future income. All households, on average, consume more out of the more predictable sources of future income, such as future Social Security benefits"--Federal Reserve Board web site.
Download or read book What is more important in case of consumption Current income or expectations written by Gabriele Pauliuk and published by GRIN Verlag. This book was released on 2021-03-18 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2014 in the subject Sociology - Consumption and Advertising, , language: English, abstract: The main goal of this paper will be to determine which of the two is more important in case of consumption. First of all, a theoretical analysis of the possible explanations of each relationship based on the existing literature will be presented. Then the research will proceed to the empirical tests (correlation and regression using SPSS Statistics software) of a created model based on consumption, gross national income as well as length of retirement in the United States and the United Kingdom over the period of 46 years. The piece will finalise with some general conclusions that can be drawn from the conducted research. Consumer behaviour is a subject of interest to many different players in the economy. Companies gather information on their current and potential customers to determine their selling and production strategies based on what their target customers might want, need, the timing at which to introduce new products, the prices to suit their tastes etc. Governments use the information on their citizens’ spending habits to figure out what policies to implement to receive effective results and garner political support for re-election. People themselves should be acquainted with the subject of consumer behaviour to better understand and use personal spending under different political, economic and social circumstances to lead more stable lives. Because of the immense interest in the subject of consumption many efforts have been put into research to distinguish the most important factors that influence consumer behaviour and so far much of such literature has been dedicated to the influence of current income and expectations (specifically expectations about future income).
Download or read book Macroeconomics and the Financial System written by N. Gregory Mankiw and published by Macmillan. This book was released on 2011 with total page 642 pages. Available in PDF, EPUB and Kindle. Book excerpt: Watch this video interview with Greg Mankiw and Larry Ball discussing the future of the intermediate macroeconomics course and their new text. Check out preview content for Macroeconomics and the Financial System here. The financial crisis and subsequent economic downturn of 2008 and 2009 was a dramatic reminder of what economists have long understood: developments in the overall economy and developments in the financial system are inextricably intertwined. Derived and updated from two widely acclaimed textbooks (Greg Mankiw’s Macroeconomics, Seventh Edition and Larry Ball’s Money, Banking, and the Financial System), this groundbreaking text is the first and only intermediate macroeconomics text that provides substantial coverage of the financial system.
Download or read book Consuming Saving and Spending Most of Income written by Stefanos Delikouras and published by . This book was released on 2017 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends the traditional life-cycle hypothesis to allow for rewards from consumption and savings. In the new model, the utility function depends both on consumption and savings, resulting in differing marginal propensities to consume (DMPC) from current income, current wealth, and future income. Specifically, consumption is financed mostly by current income. The model explains various empirical regularities not captured by the traditional life-cycle model including the hypersensitivity of consumption to current income shocks, and the drop in individual consumption at the time of retirement.
Download or read book Modern Economic Theory written by Sampat Mukherjee and published by New Age International. This book was released on 2002 with total page 1018 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Edition Includes Several New Topics To Make The Coverage More Comprehensive And Contemporary. Various Concepts And Issues Involved In Economic Analysis Have Been Thoroughly Explained And Illustrated With The Help Of Examples Drawn From Our Daily Experience. The Inter-Relationships Between Different Concepts Have Been Suitably Highlighted. The Application Of Economic Tools For Problem Solving Has Been Emphasised. Review Questions And Exercises Have Been Included In Each Chapter To Help Students To Test Their Understanding And Prepare Confidently For Examinations.The Book Would Serve As Excellent Text For B.A., B.Com And Business Administration Students. Candidates Preparing For Various Professional And Competitive Examinations Would Also Find It Very Useful.
Download or read book Krugman s Macroeconomics for AP written by Margaret Ray and published by Macmillan. This book was released on 2010-07-30 with total page 928 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Adapted from Macroeconomics, Second edition by Paul Krugman and Robin Wells."
Download or read book Macroeconomics written by Michael Burda and published by Oxford University Press. This book was released on 2022-09-02 with total page 627 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Macroeconomics Canadian Edition written by N. Gregory Mankiw and published by Macmillan. This book was released on 2010-01-22 with total page 728 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mankiw's masterful text covers the field as accessibly and concisely as possible, in a way that emphasizes the relevance of macroeconomics's classical roots and its current practice. Featuring the latest data, new case studies focused on recent events, and a number of significant content updates, the Fourth Edition takes the Mankiw legacy even further. It offers the clearest, most up-to-date, most accessible course in macroeconomics in the most concise presentation possible.
Download or read book International Economics Finance and Trade Volume I written by Pasquale Michael Sgro and published by EOLSS Publications. This book was released on 2009-07-30 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: International Economics, Finance and Trade is the component of Encyclopedia of Development and Economic Sciences in the global Encyclopedia of Life Support Systems (EOLSS), which is an integrated compendium of twenty one Encyclopedias. The subject matter of international economics and finance includes all transactions that cross national boundaries including trade in goods and services, capital and labor markets and transactions in financial assets. The chapters in these volumes are organized into six topics. The first topic starts with several chapters dealing with the 'core' theory in international economics and finance. The second topic presents with several chapters dealing with balance of payments and exchange rates and again emphasis is placed on the evolution of the various approaches. The third topic focuses on the International Financial Architecture, that is the intentional institutions such as the IMF, World bank and the various groupings of countries such as the G7 and G22, which have been set up to facilitate international trade and economic development .The fourth topic deals with a detailed looked at multinational Banking and Global Capital markets, including the role, if any, of regulation of capital markets and the Banking sector. The fifth topic looks at the strategic developments in international trade and issues of globalisation and international trade law as well as the use of terms such as “strategic trade policy” as a way of disguising trade protectionist arguments. The final topic deals in detail with environmental regulations, policy and property rights and their role in sustainable development. These two volumes are aimed at the following a wide spectrum of audiences from the merely curious to those seeking in-depth knowledge: University and College students Educators, Professional practitioners, Research personnel and Policy analysts, managers, and decision makers and NGOs.
Download or read book Consumption Response to Expected Future Income written by Laurie DeMarco and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows empirical evidence in favor of forward-looking household consumption--that consumption today depends directly on household-specific ex-ante expectations of future income. This analysis is unique in using a direct consumption measure combined with an ex-ante household-specific measure of expected future income, constructed from detailed survey and administrative data on Social Security, pensions, and retirement plans. Households with high expected future income spend more today than households that have lower future income but identical current income and net worth. Omitting household-specific future income can cause mis-estimation of key consumption questions. Furthermore, when all three resources for consumption (current income, net worth, and future income) are accounted for, the average propensity to spend out of current income is similar to predictions of optimal consumption under uncertainty in a dynamic stochastic model, although the propensities to spend out of accumulated net worth and expected future income are notably lower in the data than the optimal model. Finally, these data also provide evidence on the effect of risk on consumption while controlling for all three resources. Households with high measured risk aversion consume less out of future income. All households, on average, consume more out of the more predictable sources of future income, such as future Social Security benefits.
Download or read book Macroeconomics Second Edition Volume II written by David G. Tuerck and published by Business Expert Press. This book was released on 2018-09-28 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, produced in two volumes, takes an integrative approach to the study of macroeconomics. In that respect, the book brings the different strands of macroeconomics together into a single approach under which economic agents strive to make rational choices but, while doing so, sometimes misconstrue the data available to them. The result is imbalances between aggregate supply and aggregate demand that can cause economic contractions. These imbalances may be self-correcting, or they may become long-lived and require government intervention through the exercise of corrective monetary and fiscal policy. Volume I examines economic behavior on the assumption that economic agents correctly interpret the data before them. It thus takes a “micro foundations” approach, under which aggregate supply equals aggregate demand. Volume II allows for the possibility of myopia on the part of economic agents and for the resulting economic malperformance that can result from this myopia. It examines the short-run disparities between aggregate supply and aggregate demand that can result from ill-informed choices of individual economic agents or from a misdiagnosis of economic data by policy makers. It concludes with a review of recent U.S. economic policy. The book aims to correct a good number of misconceptions that bedevil economic policymaking—among them the idea that protracted economic contractions necessarily call for increased government spending and lower taxes. It challenges the common understanding that government deficits raise interest rates and “crowd out” private investment.
Download or read book The Economics of Enterprise written by Herbert Joseph Davenport and published by . This book was released on 1913 with total page 570 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest it written by Irving Fisher and published by . This book was released on 1967 with total page 616 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
Download or read book Impact on Individuals and Families of Replacing the Federal Income Tax written by and published by Congress. This book was released on 1997 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact on Individuals and Families of Replacing the Federal Income Tax written by Bill Archer and published by DIANE Publishing. This book was released on 2000-07 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Describes 1997 law and various tax restructuring proposals with respect to individuals and families, and provides an analysis of issues relating to tax restructuring and the impact on individuals and families. Provides a description of present-law provisions relating to the individual income tax, payroll taxes, estate and gift taxes, and certain excise taxes. Describes the proposed tax restructuring alternatives. Analyzes issues relating to tax restructuring proposals and the taxation of individuals and families. Provides data on the marriage penalty or bonus under the Fed. income tax, and data on income and payroll tax liabilities of median income families.
