Consumption (economics)
hideConsumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to production. But the precise definition can vary because different schools of economists define production quite differently. According to some economists, only the final purchase of goods and services constitutes consumption, and every other commercial activity is some form of production. Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. "the selection, adoption, use, disposal and recycling of goods and services").
Likewise, consumption can be measured by a variety of different metrics such as energy in energy economics . The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply takes the aggregate disposable income and multiplies it by a "marginal propensity to consume". This metric essentially defines consumption as the part of disposable income that does not go into savings. But disposable income in turn can be defined in a number of ways - e.g. to include borrowed funds or expenditures from savings.
For more information about Consumption (economics), read the full article at
Wikipedia.
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News tagged with spending
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Oct 13, 2009 |
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One of the more interesting developments in terms of technology is the virtual economy -- and how it translates into something that involves real money.
Japan scientists attack govt research cut plans
Nov 26, 2009 |
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Top Japanese scientists, including four Nobel laureates, have criticised the new government for plans to slash research budgets, warning the country will loose its high-tech edge.
Are we spending too much on health?
Sep 26, 2008 |
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In this poor economic climate and period of lower growth is it time to consider limiting spending on healthcare budgets? Two experts debate the issue on bmj.com today.
US tops world in health care spending, results lag
Dec 08, 2009 |
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(AP) -- The United States ranks near the bottom in life expectancy among wealthy nations despite spending more than double per person on health care than the industrialized world's average, an economic group said Tuesday.
Candy bar or healthy snack? Free choice not as free as we think
Other Sciences / Social Sciences
Oct 13, 2009 |
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If you think choosing between a candy bar and healthy snack is totally a matter of free will, think again. A new study in the Journal of Consumer Research shows that the choices we make to indulge ourselves or exercise self-c ...
Lessons for Obama in study of Bush efforts to 'frame' Iraq war
Sep 17, 2009 |
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Wartime leaders have long sought to sway public opinion by "framing" bad news from the frontlines. They present inconvenient facts in an altered format in order to generate support for their policies. A new study from North ...
Shifts in consumer spending and saving will usher in a new economic era
Sep 16, 2009 |
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(PhysOrg.com) -- Consumer spending will lag rather than lead the recovery from the current recession, according to University of Michigan economist Richard Curtin
Health care dispute: Costs of defensive medicine
Nov 04, 2009 |
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(AP) -- Dr. James Wang says he tries to tell his patients when extra medical procedures aren't necessary. If they insist, though, he will do it - not so much to protect their health as his own practice.
Firms with high analyst coverage engage in excessive external financing and capital spending
Sep 04, 2008 |
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A new study in the journal Financial Management explored whether abnormal analyst coverage influences the extent to which companies raise funds from external sources (e.g., issue bonds or sell stock) and the amount of new ...
Increased campaign spending improves citizen participation in state supreme court elections
Aug 14, 2008 |
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A new study in the American Journal of Political Science reveals that increased campaign spending significantly improves citizen participation in State Supreme Court elections.
Fatal (fiscal) attraction: Tightwads and spendthrifts tend to marry (w/ Video)
Other Sciences / Social Sciences
Aug 27, 2009 |
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(PhysOrg.com) -- When it comes to love and money, opposites really do attract, says a University of Michigan researcher.
Sluggish PC, ink sales hurt HP; results still beat
Aug 18, 2009 |
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(AP) -- Hewlett-Packard Co.'s 19 percent drop in quarterly profit shows that the company still relies heavily on printer ink and the troubled personal computer market, despite the aggressive transformation ...
VCU survey: US public supports genetic research, testing and government spending on research
Dec 17, 2008 |
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The 2008 Virginia Commonwealth University Life Sciences survey shows that eight in 10 adults nationwide favor making genetic testing easily available to all who want it, and 54 percent say that the benefits of conducting ...
Public support grows for spending on mass transit and infrastructure
Feb 10, 2009 |
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Public support is growing for expenditures on mass transit and infrastructure and remains high for education and health care, according to a National Opinion Research Center survey at the University of Chicago that has been ...
Study: Doctor-patient conversations at end of life associated with lower medical expenses
Mar 09, 2009 |
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Few physicians are eager to discuss end-of-life care with their patients. Yet such conversations may result in better quality of life for patients and could lower national healthcare expenditures for cancer care alone by ...
