The inflationary effect was computed as a function of income, marginal propensity to consume
(MPC), and estimates on the price effect of the increased oil excise on the price of food
Notowidigdo, Northwestern University and NBER; and Jialan Wang, University of Illinois at Urbana-Champaign, "The Marginal Propensity to Consume
over the Business Cycle" (NBER Working Paper No.
2007, Eggertsson and Krugman, 2012), a phenomenon called a larger marginal propensity to consume
As long as the slope of the consumption function, or the marginal propensity to consume
, is positive and less than one the value of the multiplier is greater than one.
In consumer behavior, death thoughts increase the propensity to consume
in highly materialistic societies (Arndt et al.
The mission to Kuwait and Qatar will provide South African companies with an opportunity to make inroads into the Gulf States that have a propensity to consume
large quantities of high quality niche products as well as enable South Africa to diversify its export basket.
Yet the macroeconomic effects were very different because most stock market wealth is held by the high end of the wealth-distribution spectrum, where there is a very low marginal propensity to consume
In this section we show evidence that, as predicted by the theory presented in section I, these households have a large marginal propensity to consume
out of transitory income shocks.
Talk about deficit reductions, quantitative easing and the marginal propensity to consume
mock ordinary people who see their lives diminished as libraries close, the arts are slashed and culture crucified on the cross of capitalist consumerism.
Furthermore, since money is used to acquire goods and services that in turn impacts consumption, it is posited that the income velocity of money is positively related to the marginal propensity to consume
, given that money and consumption are arguments in the utility function of the representative agent.
Respondents were also asked what they feel their propensity to consume
is, as part of the propensity to consume
5 point rise in the country's Propensity to Consume
Index (PCI) - the proportion of annual income spent on consumption of goods and services [logical not]- recorded in a survey conducted last month by online employment agency Bayt.