An Influence of Relative Income on the Marginal Propensity to Consume - Evidence from Czech Republic

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

An Influence of Relative Income on the Marginal Propensity to Consume - Evidence from Czech Republic

Popis výsledku v původním jazyce

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&apos;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.

Název v anglickém jazyce

An Influence of Relative Income on the Marginal Propensity to Consume - Evidence from Czech Republic

Popis výsledku anglicky

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&apos;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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

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

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e-ISSN

neuvedeno

Počet stran výsledku

12

Strana od-do

21-33

Název nakladatele

Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné

Místo vydání

Opava

Místo konání akce

Petrovice u Karviné

Datum konání akce

14. 9. 2016

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000403638200003