Consumption (economics)

Consumption (economics)
Economics
GDP PPP Per Capita IMF 2008.svg
General categories
Microeconomics · Macroeconomics
History of economic thought
Methodology · Mainstream & heterodox
Technical methods
Mathematical economics
Game theory  · Optimization
Computational · Econometrics
Experimental · National accounting
Fields and subfields

Behavioral · Cultural · Evolutionary
Growth · Development · History
International · Economic systems
Monetary and Financial economics
Public and Welfare economics
Health · Education · Welfare
Population · Labour · Managerial
Business · Information
Industrial organization · Law
Agricultural · Natural resource
Environmental · Ecological
Urban · Rural · Regional · Geography

Lists

Journals · Publications
Categories · Topics · Economists

Business and Economics Portal
This box: view · talk · edit

Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently. According to mainstream economists, only the final purchase of goods and services by individuals constitutes consumption, while other types of expenditure — in particular, fixed investment, intermediate consumption and government spending — are placed in separate categories. See consumer choice. Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. the selection, adoption, use, disposal and recycling of goods and services).[citation needed]

Likewise, consumption can be measured by a variety of different ways such as energy in energy economics metrics. The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply expresses consumption as a function of the aggregate disposable income. This metric essentially defines consumption as the part of disposable income that does not go into saving. But disposable income in turn can be defined in a number of ways - e.g. to include borrowed funds or expenditures from savings. Consumption also decreases demand[citation needed]

See also

Notes

References

  • Bourdieu, Pierre (1984). Distinction: A Social Critique of the Judgement of Taste (paperback). Cambridge: Harvard University Press. ISBN 0-674-21277-0.  Also:. Lincoln: London. 1984. ISBN 0-415-04546-0. 
  • Miller, Daniel (1998). A Theory of Shopping (paperback). Ithaca, N.Y: Cornell University Press. ISBN 0-8014-8551-7. 
  • Slater, Don (1997). Consumer Culture and Modernity. Cambridge, UK: Polity Press. ISBN 0-7456-0304-1. 
  • Friedman, Jonathan (1994). Consumption and Identity (Studies in Anthropology & History). Washington, DC: Taylor & Francis. ISBN 3-7186-5592-6. 
  • Mackay, Hugh (Editor) (1997). Consumption and Everyday Life (Culture, Media and Identities series) (Paperback). Thousand Oaks, Calif: SAGE Publications. ISBN 0-7619-5438-4. 
  • Isherwood, Baron C.; Douglas, Mary (1996). The World of Goods: Towards an Anthropology of Consumption (Paperback). New York: Routledge. ISBN 0-415-13047-6. 
  • Deaton, Angus (1992). Understanding Consumption. Oxford University Press. ISBN 0-19-828824-7. 

Wikimedia Foundation. 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Consumption — may refer to: Economics Use of final goods by a consumer until disposal Consumption (economics) Consumption function, an economic formula Consumption (ecology) Other Consumption, an archaic name for pulmonary tuberculosis ingestion of food and… …   Wikipedia

  • Consumption function — In economics, the consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and detailed most famously in his book The General Theory of Employment, Interest, and Money. The… …   Wikipedia

  • consumption — con‧sump‧tion [kənˈsʌmpʆn] noun [uncountable] 1. COMMERCE ECONOMICS the amount of goods, services, energy, or natural materials used in a particular period of time: • Texas is second only to California in beer consumption. • Cuban households… …   Financial and business terms

  • Consumption smoothing — is the economic concept used to express the desire of people for having a stable path of consumption. Since Milton Friedman s permanent income theory (1956) and Modigliani and Brumberg (1954) life cycle model, the idea that agents prefer a stable …   Wikipedia

  • Economics of the arts and literature — or, for ease of reference below, cultural economics, is a branch of economics that studies the economics of creation, distribution, and the consumption of works of art and literature. For a long time the arts were confined to visual and… …   Wikipedia

  • consumption function — ▪ economics       in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future… …   Universalium

  • consumption function — conˈsumption ˌfunction noun [singular] ECONOMICS a measure of the changes in the way that consumers spend money on goods and services when there are changes to their income * * * consumption function UK US noun [S] ► ECONOMICS a way of… …   Financial and business terms

  • Consumption of fixed capital — (CFC) is a term used in business accounts, tax assessments and national accounts for depreciation of fixed assets. CFC is used in preference to depreciation to emphasize that fixed capital is used up in the process of generating new output, and… …   Wikipedia

  • consumption goods — ➔ goods * * * consumption goods UK US noun [plural] ► ECONOMICS, COMMERCE CONSUMER GOODS(Cf. ↑consumer goods) …   Financial and business terms

  • Economics — agflation Anglosphere attention economics bionomics brain waste brickor mortis BRICs caponomics …   New words

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”