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Robertson Lag
The Robertson Lag is an example of the systematic delay which the economy suffers from when conditions change and is named after the famous economist Dennis Robertson. This lag describes how a consumers change in income and wealth, a change in its consumption function, leads to a delayed change in its consumption.Burda, Wyplosz (2005): Macroeconomics: A European Text, Fourth Edition, Oxford University Press See also *Lundberg lag The Lundberg lag, named after the Swedish economist Erik Lundberg Erik Filip Lundberg (13 August 1907 – 14 September 1987) was a Swedish economist, born in Stockholm. He was a professor of political economics at Stockholm University and a m ... Notes and references Consumer theory Consumption {{Econ-theory-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dennis Robertson (economist)
Sir Dennis Holme Robertson (23 May 1890 – 21 April 1963) was an English economist who taught at Cambridge and London Universities. Biography Robertson, the son of a Church of England clergyman, was born in Lowestoft and educated as a scholar of Eton and at Trinity College, Cambridge, where he read Classics and Economics, graduating in 1912. Robertson worked closely with John Maynard Keynes in the 1920s and 1930s, during the years when Keynes was developing many of the ideas that later were incorporated in his ''General Theory of Employment, Interest and Money''. Keynes wrote that at that time, working with Robertson, it was good to work with someone who had a "completely first class mind". Robertson was the first to use the term "liquidity trap".Richard Sutc''The Liquidity Trap: A Lesson from Macroeconomic History for Today''note 7 Ultimately however, differences of temperament and views about economic theory and practice (especially in the 1937 debate over the savings-inves ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumption Function
In economics, the consumption function describes a relationship between consumption and disposable income. The concept is believed to have been introduced into macroeconomics by John Maynard Keynes in 1936, who used it to develop the notion of a government spending multiplier. Details Its simplest form is the ''linear consumption function'' used frequently in simple Keynesian models: :C = a + b \cdot Y_ where a is the autonomous consumption that is independent of disposable income; in other words, consumption when disposable income is zero. The term b \cdot Y_ is the induced consumption that is influenced by the economy's income level Y_. The parameter b is known as the marginal propensity to consume, i.e. the increase in consumption due to an incremental increase in disposable income, since \partial C / \partial Y_ = b. Geometrically, b is the slope of the consumption function. Keynes proposed this model to fit three stylized facts: * People typically spend a part, but not ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lundberg Lag
The Lundberg lag, named after the Swedish economist Erik Lundberg Erik Filip Lundberg (13 August 1907 – 14 September 1987) was a Swedish economist, born in Stockholm. He was a professor of political economics at Stockholm University and a member of the Stockholm School of economic thought. He was president ..., stresses the lag between changes in the demand and response in output. This is one lag which points out that business cycles do not follow a completely random fashion but can be explained with a few different important regularities. See also * Robertson lag Notes and references Business cycle {{macroeconomics-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Theory
The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint. Factors influencing consumers' evaluation of the utility of goods: income level, cultural factors, product information and physio-psychological factors. Consumption is separated from production, logically, because two different economic agents are involved. In the first case consumption is by the primary individual, individual tastes or preferences determine the amount of pleasure people derive from the goods and services they consume.; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. The models that make up consumer theory ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
