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

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

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

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

2017

Kód důvěrnosti údajů

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

Název statě ve sborníku

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

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e-ISSN

neuvedeno

Počet stran výsledku

6

Strana od-do

12-17

Název nakladatele

Gaudeamus

Místo vydání

Hradec Králové

Místo konání akce

Hradec Králové

Datum konání akce

13. 9. 2017

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000427151400003