Relative Income in Durable and Non-Durable Consumption Function: Cross-Sectional Study
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F19%3A10243443" target="_blank" >RIV/61989100:27510/19:10243443 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Relative Income in Durable and Non-Durable Consumption Function: Cross-Sectional Study
Original language description
Since the life cycle hypothesis the consumption theory has been understood as the theory of utility streaming from consumption of goods and services at the time of its purchase. In this sense the consumption of durable goods is actually not a con-sumption, but rather a kind of investment. Although this statement seems to be clear and logic, for the sake of simplicity many empirical studies ignore this fact and assume the same structural patterns for both durable and non-durable con-sumption function. But can we actually simplify household consumption behaviour that much at the first place? Does this equivalence hold also for the interdependent concept of consumption and utility? The aim of this work is to make a little contribution in answering these questions by estimating the consumption functions of durables and non-durables separately focusing on the influence of relative income. The regression analysis of the cross-sectional dataset of Czech households reveals that while relative income is the key determinant of non-durable consumption function, its influence is strongly insig-nificant in the durable consumption behaviour. This finding implies that interde-pendent nature of consumption truly holds only for the situations where the utility is gained at approximately the same time as the related consumption.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50200 - Economics and Business
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
MME 2019 : 37th International Conference on Mathematical Methods in Economics 2019 : conference proceedings : České Budějovice, September 11-13, 2019
ISBN
978-80-7394-760-6
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
185-190
Publisher name
Jihočeská univerzita v Českých Budějovicích
Place of publication
České Budějovice
Event location
České Budějovice
Event date
Sep 11, 2019
Type of event by nationality
CST - Celostátní akce
UT code for WoS article
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