Application of the Free Tangent Law in Quantification of Household Satisfaction from Durable Consumer Goods.

Wiktor Ejsmont,Marek Biernacki

doi:10.3390/e23091109

Abstract

This paper presents a postulate for a new approach in the measurement of households’ satisfaction from durable consumer goods, based on a modified inflation expectation measurement method used in survey research. The authors examine the application of a three-step qualitative evaluation, followed by the quantification of responses using a modified Carlson and Parkin method adopted in the context of the free tangent law.

Highlights

This paper presents arguments for the application of a new method of measurement, considering the living conditions but—most of all—satisfaction of respondents from durable consumer goods held in their possession
The most notable difference is the elimination of the pecuniary value of household effects; instead, the method examines their role in the satisfaction of household needs and requirements. Another important distinction of the postulated approach is the application of the free tangent law [9] for the analytical evaluations of responses
Before we proceed with a detailed presentation of this type of distribution, it may be useful to recall some of the basic concepts of the free probability theory, developed in the early 1980s in [13]

Summary

Introduction

For the EU area, the pertinent declarations were expressed in the Maastricht Treaty (1992) and the Treaty of Lisbon (2007) Practical evaluations of such notions as quality of life or happiness (satisfaction) should not be based solely on their economic properties or effects. The most notable difference is the elimination of the pecuniary value of household effects; instead, the method examines their role in the satisfaction of household needs and requirements Another important distinction of the postulated approach is the application of the free tangent law [9] for the analytical evaluations of responses. The first group was represented by low-income households reporting problems in procurement of some of their basic material needs, either due to the inadequacy of resources or low creditworthiness This group included those households which, while reporting ownership of durable goods, regarded them well below their expectations.

The Free Tangent Law

Analysis of Inflation Expectations

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Practical Applications of the Postulated Model