An Influence of Relative Income on the Marginal Propensity to Consume - Evidence from Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F16%3A86098171" target="_blank" >RIV/61989100:27510/16:86098171 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
An Influence of Relative Income on the Marginal Propensity to Consume - Evidence from Czech Republic
Original language description
This study deals with the question whether there is a relationship between the marginal propensity to consume and the status of the household in income distribution represented by a relative income. If so, then the current assumption of mainstream theory of consumption about the constant marginal propensity to consume could no longer be considered realistic and it will be necessary to take the element of relative income as a new key determinant of general consumption function. The aim of this work is to identify, describe and prove an influence of relative income on the marginal propensity to consume using data from Czech Republic and thus to prove the correctness of Duesenberry's relative income hypothesis. To achieve this goal, we use a panel regression, which results clearly confirm the validity of the initial hypothesis about the existence of functional dependence of the marginal propensity to consume on the relative income and thus it fully supports the idea of interdependent concept of utility and consumption. This finding also implies a number of recommendations for policy-makers.
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
—
OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 14th International Scientific Conference Economic Policy in the European Union Member Countries: September 14-16, 2016, Petrovice u Karviné, Czech Republic. Part 1
ISBN
978-80-7510-210-2
ISSN
—
e-ISSN
neuvedeno
Number of pages
12
Pages from-to
21-33
Publisher name
Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné
Place of publication
Opava
Event location
Petrovice u Karviné
Event date
Sep 14, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000403638200003