doubt, consumption is a complicated function of all measures of income, past, present, expected and relative. In view of the unresolved state concerning the proper measure of income to use as the explanatory variable in consumption-income analysis, it seems We shall assume that desirable to abstract from the question altogether. household decisions on consumption are in two parts: first, the decision as to how much of total income (be it actual, permanent or relative) to spend on consumption, and second…
Words 5617 - Pages 23