Does Relative Income Have an Impact on the Consumption of Hungarian Households?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F17%3A10236794" target="_blank" >RIV/61989100:27510/17:10236794 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
Does Relative Income Have an Impact on the Consumption of Hungarian Households?
Original language description
This paper examines the influence of relative income on the consumption function, particularly the issue of the precise quantification of the relationship between the marginal propensity to consume and the position of the household in the income distribution represented just by relative income. Mainstream theory of con-sumption, though it is aware of this effect, for its focus primarily on the aggregate consumption, it pays virtually no attention to this. However, if it is possible to accu-rately describe and quantify this so-called relative income effect, it will mean a rele-vant contribution to the explanation of individual consumption patterns or consumption of income categories. The aim of this work is to find and precisely quantify the impact of relative income on the marginal propensity to consume on the example of Hungarian households and thus to support the idea of interdependent concept of utility and consumption. To achieve this goal, we use a panel regression analysis. The results unambiguously confirm the statistical validity of the initial hypothesis, which shows that the consumption decisions of Hungarian households are interdependent. Moreover the more precise form of the wanted regression equation was found in estimation by the polynomial function.
Czech name
—
Czech description
—

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Mathematical Methods in Economics: MME 2017 : 35th international conference : conference proceedings : Hradec Králové, Czech Republic, September 13th-15th, 2017, University of Hradec Králové
ISBN
978-80-7435-678-0
ISSN
—
e-ISSN
neuvedeno
Number of pages
6
Pages from-to
12-17
Publisher name
Gaudeamus
Place of publication
Hradec Králové
Event location
Hradec Králové
Event date
Sep 13, 2017
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000427151400003

Similar results(10)