Money Illusion and the Aggregate Consumption Function.
A standard result of the theory of rational consumer behavior in a static monetary economy is that a consumers demand functions for commodities are homogeneous of degree zero in prices, money income and money wealth. Economist Don Patinkin has defined this condition as the absence of money illusion....
| Publicado en: | American Economic Review Vol. 59; no. 5; pp. 832 - 850 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
American Economic Association
Dec69
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4504657&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4504657 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Dec69 vid: 59 iid: 5 pid: 22 pub: American Economic Association artinfo: ui: 4504657 ppf: 832 ppct: 18 formats: tig: atl: Money Illusion and the Aggregate Consumption Function. aug: au: Branson, William H. Klevorick, Alvin K. affil: Associate Professor of Economics and public affairs, Princeton University. Assistant Professor of Economics, Yale University. su: Consumer behavior Money illusion Prices Patinkin, Don Demand function Consumption (Economics) Real income Wealth sug: subj: Consumer behavior Money illusion Prices Patinkin, Don Demand function Consumption (Economics) Real income Wealth ab: A standard result of the theory of rational consumer behavior in a static monetary economy is that a consumers demand functions for commodities are homogeneous of degree zero in prices, money income and money wealth. Economist Don Patinkin has defined this condition as the absence of money illusion. People whose demands for commodities would be altered by an equiproportionate change in all prices, money income and money wealth are said to suffer from money illusion. Aggregating over all commodities purchased by the consumer, this standard theorem leads to the conclusion that an individual's total real consumption demand is homogeneous of degree zero in prices, money income and money wealth. Finally, aggregating over all consumers, this result would imply that the economy's aggregate real consumption should be a function of aggregate real income and aggregate real wealth, but not the price level. It would be most useful to introduce the money illusion consumption function into a complete simultaneous equation model. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1969 holdings: @attributes: islocal: N |
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