Author: George KatonaPublisher: Greenwood
ISBN:
Category : Business & Economics
Languages : en
Pages : 272
Book Description
Consumer Response to Income Increases
Author: George KatonaPublisher: Greenwood
ISBN:
Category : Business & Economics
Languages : en
Pages : 272
Book Description
Consumer Response to Income Increases [by] George Katona [and] Eva Mueller
![Consumer Response to Income Increases [by] George Katona [and] Eva Mueller PDF](https://books.google.com/books/content/images/frontcover/V5KlswEACAAJ?fife=w80-h100)
Author: George KatonaPublisher:
ISBN:
Category : Consumers
Languages : en
Pages : 244
Book Description
Weekly Weather and Crop Bulletin
Author: National Saving and Economic Performance
Author: B. Douglas BernheimPublisher: University of Chicago Press
ISBN: 9780226044040
Category : Business & Economics
Languages : en
Pages : 408
Book Description
"... Papers presented at a conference held at the Stouffer Wailea Hotel, Maui, Hawaii, January 6-7, 1989. ... part of the Research on Taxation program of the National Bureau of Economic Research." -- p. ix.
Consumer Responses to Income Increases
Author: G. KatonaRevisiting the Income Effect
Author: Dora GichevaPublisher:
ISBN:
Category : Gasoline
Languages : en
Pages : 58
Book Description
This paper examines the importance of income effects in purchase decisions for every-day products by analyzing the effect of gasoline prices on grocery expenditures. Using detailed scanner data from a large grocery chain as well as data from the Consumer Expenditure Survey (CES), we show that consumers re-allocate their expenditures across and within food-consumption categories in order to offset necessary increases in gasoline expenditures when gasoline prices rise. We show that gasoline expenditures rise one-for-one with gasoline prices, consumers substitute away from food-away-from-home and towards groceries in order to partially offset their increased expenditures on gasoline, and that within grocery category, consumers substitute away from regular shelf-price products and towards promotional items in order to save money on overall grocery expenditures. On average, consumers are able to decrease the net price paid per grocery item by 5-11% in response to a 100% increase in gasoline prices. Our results show that consumers respond to permanent changes in income from gasoline prices by substituting towards lower-cost food at the grocery store and lower priced items within grocery category. The substitution away from full-priced items towards sale items has implications for microeconomic discrete-choice demand models as well as for macroeconomic inflation measures that typically do not incorporate frequently changing promotional prices.
Intermediate Microeconomics
Author: Patrick M. EmersonPublisher:
ISBN:
Category : Economics
Languages : en
Pages :
Book Description
A Discourse on the Rise, Progress, Peculiar Objects, and Importance, of Political Economy
Author: John Ramsay McCullochPublisher:
ISBN:
Category : Commerce
Languages : en
Pages : 130
Book Description
The Economics of Consumption
Author: Tullio JappelliPublisher: Oxford University Press
ISBN: 0199383170
Category : Business & Economics
Languages : en
Pages : 313
Book Description
Consumption decisions are crucial determinants of business cycles and growth. Knowledge of how consumers respond to the economic environment and how they react to the risks that they encounter during the life-cycle is therefore important for evaluating stabilization policies and the effectiveness of fiscal packages implemented in response to economic downturns or financial crises. In The Economics of Consumption, Tullio Jappelli and Luigi Pistaferri provide a comprehensive examination of the most important developments in the field of consumption decisions and evaluate economic models against empirical evidence. The first part of the book provides the basic ingredients of economic models of consumption decisions. The central part reviews the empirical literature on the effect of income and wealth changes on consumption and on the relevance of precautionary saving and credit market imperfections. The last chapters extend the basic framework to such important areas as bequests, leisure, lifetime uncertainty, and financial sophistication. Jappelli and Pistaferri shed light on important issues, including how consumption responds to changes in economic resources, how economic circumstances and consumers' characteristics influence behavior, and whether consumption inequality depends on income shocks and their persistence.
Consumer Response to the Timing of Income
Author: Joel SlemrodPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
In 1992, the income tax withholding tables were adjusted so that withholding was reduced. A typical worker received an extra $28.80 in take-home pay per month in March through December 1992, to be offset by a lower tax refund in 1993. The change in withholding amounted to 0.5 percent of GDP. President Bush, who proposed this change in his State of the Union address, intended that it provide a temporary stimulus to demand. But the policy change involved only the timing of income, so, under the life-cycle/permanent-income model, it would be predicted to have a negligible effect on consumption and aggregate demand. This paper reports consumers' responses to the change in withholding. The results are based on a survey taken shortly after it went into effect. Forty-three percent of consumers report spending the extra take-home pay--substantially more than the zero percent predicted by the standard models, but substantially less than the one hundred percent upon which the policy was predicated. The decision to save the income is not explained by expected income growth. Therefore, while behavior of many households is not fully consistent with the life-cycle/permanent-income model, liquidity constraints do not appear to account for this behavior.