Consumption Propensity Research Articles

공동주택 가족구성원별 전력소비성향에 관한 연구

Korea is a country with an exceptionally high energy consumption. For economic reasons, Korean households are forced to save more energy. Korea`s household energy consumption has grown slowly compared to other sectors and household energy consumption per capita is lower than the OECD average. However, its per capita electricity consumption soared and is expected to remain climbing mainly due to the increasing number of one-person households. To establish an effective strategy against a possible electricity shortage, the actual condition survey of electricity energy consumption first needs to be clearly understood. This study adopted both a general survey and a detailed survey of people living in apartment housings and data was collected on electrical appliance use according to individual schedules. Based on these data, the results were used to attempt to analyze electricity consumption patterns resulting from energy using activities of residents and to determine electricity consumption propensity according to each household member`s characteristics in apartment housings.

골프연습장 환경요인이 소비성향 및 고객행동에 미치는 영향

The purpose of this study is to grasp influence of environmental factors in golf practice range upon consumption propensity and customer behavior and is to offer objective data available for supporting the rational customer-behavior alternative plan and the efficient sports marketing means by suggesting validity of consumption propensity as well as offering substantial data necessary for managing golf practice range. The coded data was individually inputted in computer and was carried out frequency analysis by utilizing SPSS 17.0 for Window program. For testing research hypothesis, the correlation analysis and the standard multiple regression analysis were carried out. The following are the conclusions that were obtained on the basis of the research method and the findings in the above. First, the environmental factors of golf practice range were indicated to have influence upon consumption propensity. The statistically significant influence was indicated in promotion(+) for the facility factor, in facility(-), cost(-) & situation(-) for program factor, and in cost(-) & situation(-) for coach factor. Second, the environmental factors of golf practice range were indicated to have influence upon customer behavior. The statistically significant influence was indicated in customer satisfaction(+) for the facility factor, in customer satisfaction(+) & customer loyalty(-) for program factor, and in customer satisfaction(+) for coach factor.

A Perspective on Frugality in Growing Economies: Triggering a Virtuous Cycle between Consumption Propensity and Growth

The relationship between Growing economies have recovered from the global financial crisis faster than many developed economies and increased the consumption significantly over the past years. In light of the role of their consumption growth in global sustainability, this paper analyzes the decisive factors leading to a virtuous cycle between consumption propensity and investment in growing economies. An empirical analysis was conducted to identify the contributing factors to such a cycle in 40 countries. They could be divided into three economic groups by the marginal propensity to consume. The results suggest that growing economies suffer from an autarky cycle between consumption and GDP due to insufficient investment elasticity against consumption elasticity while advancing and advanced economies allow GDP growth to induce investment efficiently. A possible trigger for inducement of investment by growth in growing economies can be ‘frugality’.

Industrial structure and economic fluctuation—Evidence from China

Industrial structure evolves with economic development. Since the reform and opening up of the economy in 1978, China has undergone rapid economic growth and dramatic industrial restructuring, with the proportion of the primary, secondary and tertiary industry changed respectively from 28%, 48% and 24% of GDP in 1978 to 11%, 49% and 40% in 2008. Using panel data from 31 provinces in the past three decades, this paper empirically examined the relationship between economic growth and industrial structure. Based on results from unit root test, cointegration test, and Granger causality test, this paper concluded that the two variables are order-1 integrated, short-run economic fluctuation causes industrial structure disproportion, while a long-run bidirectional causal relationship exists between industry structure disproportion and economic aggregate fluctuation. This paper also investigated the determinants of China's industrial structure and found that influential factors include per capita GDP, domestic consumption propensity, urban–rural disparity, scale of the labor force and capital stock, property right protection, and administrative effectiveness.

Between a rock and a hard place: Recession and telecoms taxation

Excessive taxation in the telecoms services sector is rarely found in developed economies as it hinders high technology investments, confines innovation and eventually impedes economic growth. Recession eventually complicates this process. In this paper the repercussions of multi-layer service taxation on the Greek mobile sector during the last five years are studied. It is found that public revenues, companies and subscribers would significantly benefit from a direct decrease of the special levy imposed on the use of mobile services today. An econometric model that links the consumption propensity of mobile voice service usage with the disposable income of the users and the price of the product is applied. The results of this research indicate that the adoption of high sector specific service taxes with the objective of increasing government revenues creates an economic distortion that lowers service usage, shrinks sector revenues, and, ultimately, jeopardizes the competitiveness of the mobile telecommunications sector.

Goodwin or Kalecki in Demand? Functional Income Distribution and Aggregate Demand in the Short Run

In a seminal paper on Marxian business cycle theory, Goodwin (1967) presented a model which assumed that a higher wage share leads to lower investment and thus a general economic slowdown. In contrast Kalecki (1971) was arguing that a higher wage share would have an expansionary effect because the consumption propensity out of wage income is higher than that out of profit income. Based on a general model that allows for wage-led as well as profit-led demand regimes, this paper estimates the effects of a change in the wage share on aggregate private domestic demand with quarterly data for 12 OECD countries. JEL classification: E11, E12, E20, E22, E25

Conditional Quantile Processes Based on Series or Many Regressors

Quantile regression (QR) is a principal regression method for analyzing the impact of covariates on outcomes. The impact is described by the conditional quantile function and its functionals. In this paper we develop the nonparametric QR series framework, covering many regressors as a special case, for performing inference on the entire conditional quantile function and its linear functionals. In this framework, we approximate the entire conditional quantile function by a linear combination of series terms with quantile-specific coefficients and estimate the function-valued coefficients from the data. We develop large sample theory for the empirical QR coefficient process, namely we obtain uniform strong approximations to the empirical QR coefficient process by conditionally pivotal and Gaussian processes, as well as by gradient and weighted bootstrap processes.We apply these results to obtain estimation and inference methods for linear functionals of the conditional quantile function, such as the conditional quantile function itself, its partial derivatives, average partial derivatives, and conditional average partial derivatives. Specifically, we obtain uniform rates of convergence, large sample distributions, and inference methods based on strong pivotal and Gaussian approximations and on gradient and weighted bootstraps. All of the above results are for function-valued parameters, holding uniformly in both the quantile index and in the covariate value, and covering the pointwise case as a by-product. If the function of interest is monotone, we show how to use monotonization procedures to improve estimation and inference. We demonstrate the practical utility of these results with an empirical example, where we estimate the price elasticity function of the individual demand for gasoline, as indexed by the individual unobserved propensity for gasoline consumption.

Why Has China’s Final Consumption Rate Declined Since 1978? Causes and Implications

Along with the rapid economic growth since 1978, there has been a remarkable trend in China, i.e. the steady decline of the share of final consumption expenditure in GDP that has made China one of economies with a low consumption rate in the world for a long time period. This phenomenon is concerned by economists since it is important for economic policies given the key role of consumption in the economic growth. This paper is to explore causes about decline in China’s final consumption rate since the economic reform. Evidence implies four causes: decrease of consumption propensity, adjustment of national income distribution structure, reform of urban housing system and slow growth of rural income.

Regional Difference in Food Consumption Away from Home of Urban Residents: A Panel Data Analysis

China's economy has been developing rapidly and people's living standards have improved during the past decades.. With the acceleration of modern life rhythm and change of consumption concept, the food consumption pattern of urban residents has changed largely. Urban Households begin to pursue nutritious, fresh, convenient and fast food, and dining out becomes a consumption fashion. The overall goal of this paper is to better understand food-away-from-home (FAFH) consumption in urban China. We use a secondary panel data food consumption of urban residents at the provinces (municipalities) level to examine the trends in FAFH during 2000-2008. Particularly, we use fixed effects regression model to analyze the main factors through which people's food-away-from-home expenditure and regional propensity to consume are affected. We find that, nowadays income is the most important socio economic factors that determine the food-away-from-home consumption of urban residents, and people's FAFH consumption is highly elastic, the income elasticity of FAFH is higher in the low income group than that in the medium and high income group. Additionally, people's consumption propensity towards dining out in western China is somewhat higher than that in eastern and central regions in China. FAFH high-income elasticity provides a good indicator for FAFH demand.

Retail Return Policy, Endowment Effect, and Consumption Propensity: An Experimental Study

Abstract The impact of retail return policy on consumer behavior has not drawn enough attention from researchers. Lenient return policies insure consumers against having regret after purchasing, so they may increase consumers' likelihood of purchasing. The behavioral theory of endowment effect suggests that consumers may then have a harder time returning purchased goods because people value objects more highly once they own them. We conducted a test of our hypotheses on how return policy and endowment effect influence purchasing tendency and return rate. This experiment proved that endowment effect did affect the returning behavior of consumers. It showed that lenient return policies significantly increased initial purchasing tendency but did not increase return rate. This suggests a potential to increase consumption by adopting lenient return policies.

성별에 따른 아동소비자의 자아개념이 비합리적 소비성향에 미치는 영향 - 온라인 아이템 구매를 중심으로 -

This study was conducted to investigate effects of self concept of children consumers on consumption propensity of online items according to gender by considering that self, which means a thought on ownself, is expressed as online items in cyber space. Totally, 760 copies of the questionnaire were distributed and 716 ones were finally used as data for analysis in this study. The data were analyzed by using SPSS 14.0 and factorial analysis, Cronbach' , t-test, cross tabulation analysis and multiple regression were conducted. The results of this study could be summarized as follows. First, the factorial analysis performed to examine types of self concept found four factorial structures - justness, social, academic and family self. In addition, the factorial analysis done to determine compositional factors of irrational consumption propensity of children consumers showed three factorial structures - impulse buying, conspicuous consumption and imitative consumption. When the effects of personal variables, item-transaction variables and self concept on irrational consumption propensity of children consumers were investigated according to gender, significant factors affecting consumption propensity of both of the males and females were a monthly pocket money, time using the Internet and major transaction items. In addition, parents' permission for purchasing items, justness self and family self were found to be variables affecting consumption propensity in the male children. On the contrary, self concept of female children did not affect irrational consumption propensity.

Diversity, persistence and chaos in consumption patterns

In this paper we present a model from which discretionary consumption dynamics can be analyzed as global properties emerging from the endogenous transformation of a society inhabited by boundedly rational interactive consumers. By considering local and global interactions among consumers, we show that behavioral diversity plays a central role in the evolution of consumption patterns. The analysis of the model reveals the existence of a regime characterized by the persistence of different social standards, and a time evolution of the social distribution of behavioral patterns towards a heteroclinic cycle. In some cases the evolution seems to be chaotic, generating unpredictable, erratic dynamics of the aggregate social indices (average or social propensity for discretionary consumption).

Correlates Of Inorganic Fertilizer Consumption Among Smallholder Farmers In Abia State, Nigeria

This paper investigated the correlates of inorganic fertilizer consumption among smallholder farmers in Abia State, Nigeria A multi – stage random sampling technique was employed in selected local government areas, communities and respondents from the three agricultural zones (Aba, Ohafia and Umuahia) of the state. The sample size was 150. The results of the linear functional model indicate that four (farmer incomes, farm experiences, transportation costs and price of 50kg fertilizer bag) out of the eight variables were key determinants of the smallholder farmers\' fertilizer consumption at 5% risk level. However the combined effects of all the variables explained 57.6 percent of the variations in the total fertilizer consumption rate of the smallholder farmers in Abia state Nigeria. Higher level of subsidy on fertilizer is recommended as a deliberate policy to increase the fertilizer consumption propensity of the smallholder farmers. Keywords: Correlates, Inorganic Fertilizer, Consumption, Smallholder farmer.Journal of Agriculture and Social Research Vol. 8 (1) 2008: pp.62-69

ENDOGENIZING CONSUMPTION IN THE INPUT‐OUTPUT MODEL: THEORY AND APPLICATION

Since the basic model of input‐output analysis does not take into consideration the income effect on consumption expenditure, we constructed a model which endogenizes consumption and breaks down integrated production inducement into Leontief and Keynesian effects in a generalized context and in two solution approaches. Using short‐term marginal consumption propensities, we estimated that Keynesian effects make up about 14% of the integrated inducement effects for Japan. The public services sector, which is not influential in the basic model, becomes very influential in consideration of Keynesian effects. Manufacturing and service sector products are the main targets of the expanded consumption. The impact of a change in exogenous final demand can be easily simulated by applying the suggested apparent input coefficient matrix to the integrated inverse matrix.

Housing wealth, financial wealth, and consumption: New evidence from micro data

Fluctuations in the stock market and in house values over the course of recent years have led to renewed macroeconomic policy debate as regards the effects of financial and housing wealth in the determination of consumer spending. This research assembles a unique matched sample of household data from the Survey of Consumer Finance and the Consumer Expenditure Survey to estimate the consumption effects of financial and housing wealth. The micro-data permit numerous innovations in the assessment of wealth effects, including an analysis of the impact of wealth on both durable and non-durable consumption and a comparison of wealth effects as derive from gross versus after-debt measures of financial and housing wealth. Further, the research seeks to assess robustness of those estimates to deviations from trend and volatility in financial and housing wealth and among credit constrained and non-credit constrained households. Overall, research findings indicate relatively large housing wealth effects. Among homeowners, the housing wealth elasticities are estimated in the range of .06 over the 1989–2001 period. In marked contrast, the estimated elasticities of consumption spending with respect to financial wealth are smaller in magnitude and are in the range of .02. Further, the estimated wealth elasticities appear robust to deviations from trend and volatility in the wealth measures. Research findings support the hypothesized behavioral distinction in household consumption spending across durable versus non-durable categories. Consumption propensities also diverge sharply across the credit constrained and non-credit constrained households. Finally, there is little difference in wealth elasticities derived from measures of home equity versus house values. Research findings suggest the possibility of sizable reverse wealth effects. For example, a 10 percent decline in housing wealth from 2005 levels translates into a 1 percentage point decline in real GDP growth, a sizable reduction relative to the approximate 4 percent real GDP growth evidenced in prior years. Results of the analysis point to the sizable economy-wide risks associated with the recent retrenchment in house values.

Functional income distribution and aggregate demand in the Euro area

An increase in the wage share has contradictory effects on the subaggregates of aggregate demand. Private consumption expenditures ought to increase because wage incomes typically are associated with higher consumption propensities than capital incomes. Investment expenditures ought to be negatively affected because investment will positively depend on profits. Net exports will be negatively affected because an increase in the wage share corresponds to an increase in unit labour costs and thus a loss in competitiveness. Therefore, theoretically, aggregate demand can be either wage-led or profit-led depending on how these effects add up. The results will crucially depend on how open the economy is internationally. The paper estimates a post-Kaleckian macro model incorporating these effects for the Euro area and finds that the Euro area is presently in a wage-led demand regime. Implications for wage policies are discussed.

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences

Considerations Concerning the Impact of Propensities on Basic Macroeconomic Occurrences In the article theoretical deliberations relating to impact of propensities on basic macroeconomic phenomena were presented. A general definition of propensity was discussed. The influence of propensity for consumption, propensity for investment and propensity for thesaurization on national income, interest rates, consumption expenditures, investments and money supply was analyzed. Derivatives that make it possible to identify quantitative effects of propensities were introduced. On the basis of the discussed Keynesian model it is possible to say that the propensity to consume increases interest rate and national income, the propensity to invest makes investments, national income and interest rates higher and the propensity for thesaurization could increase interest rates by lowering money supply.

A note on interactions-driven business cycles

Within the standard Keynesian multiplier framework, extended by a micro- model of interactive formation of individual consumption propensities, we demonstrate that socioeconomic interactions can lead to cyclical fluctuations in aggregate economic activity. The underlying micro-model of direct interactions is a version of Alan Kirman's generic opinion formation model, with an additional feedback effect from macroscopic variables on the transition probabilities. Our model engenders cyclical fluctuations of economic variables, despite the fact that neither the Keynesian multiplier model nor Kirman's model does so on its own.

世帯属性と産業廃棄物発生の関係

The present paper discusses the relationship between the types of various household characteristics and the industrial waste generations and landfills, using the non-competitive import type input-output model. For the empirical analysis, we used the 1995 waste generation data focusing on the 69 industrial wastes and 1995 landfill ratios from the waste survey data, 1995 household survey statistics, and the 1995 non-competitive import type input-output table. Using the basic data, we estimated the industrial waste generations and landfills directly and indirectly induced by the consumption propensities of the various household types such as householder income levels, householder age, and house types and evaluated the differences in the embodied waste generations and landfills for the household types.

Status consumption and ethnicity in Bolivia: evidence from durables ownership

AbstractThe ‘compensatory consumption’ hypothesis advanced by Caplovitz in 1967 predicts that households facing racial or ethnic discrimination tend to spend heavily on socially visible consumption goods to make up for their low‐status position in society. This paper provides an empirical test of this prediction in Bolivia, where people of indigenous origin face social exclusion. Using recent household survey data, we examine whether low‐income households of indigenous origin overspend on socially visible durable goods relative to equally poor, non‐indigenous households. We find a marked difference in the propensity for compensatory consumption between the two largest indigenous groups in Bolivia.