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Questions Related to Consumption and Saving

  • Lester D. Taylor
Chapter

Abstract

As we have seen, decisions to save out of current income are additions to the pool of fluid capital, while decisions to consume or invest in produced means of production are subtractions. The economic drivers in an economy have been seen as owners/operators of productive capacity deciding how much of that capacity to utilize, entrepreneurs deciding how much to invest in new capacity, and households deciding how much of their income to consume. In general, this book has not been about the motivations that cause these decisions to occur, but rather about the implications of the decisions for changes in the pool of fluid capital and attendant effects upon interest rates and the general price level.

Keywords

Natural Rate Income Elasticity Private Saving Current Income Retirement Saving 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Hirsch, F. (1976), Social Limits to Growth, Twentieth Century Fund, Harvard University Press, Cambridge.Google Scholar
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  3. Stigler, G.J. and Becker, G.S. (1977), “De Gustibus Non Est Disputandum,” American Economic Review, Vol. 67, No. 2, pp. 76–90.Google Scholar
  4. Taylor, L.D. (1987), “Opponent Processes and the Dynamics of Consumption,” in Economic Psychology: Intersections in Theory and Application, ed. by A.J. MacFadyen and H.W. MacFadyen, North Holland Publishing Co, Amsterdam.Google Scholar
  5. Taylor, L.D. (1988), “A Model of Consumption Based on Psychological Opponent Processes,” in Psychological Foundations of Economic Behavior, ed. by P. Albanese, Praeger, New York.Google Scholar
  6. Thurow, L.C. (1999), Building Wealth: The New Rules for Individuals, Companies, and Nations in a Knowledge-Based Economy, Harper-Collins, New York.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ArizonaTucsonUSA

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