Abstract

This paper, under several assumptions, tries to illustrate how three variables (the distribution of family's average per capita income (DFAPCI), the output of durable consumer goods (DCG) affect the demand for DCG. A mathematical model of demand for DCG is set up. Applying the model and actual data of DCG of socialist and capatalist countries, the paper conculdes that the shortage of DCG in socialist countries is mainly caused by their special DFAPCIs.

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