Utility Analysis and the Consumption Function
work by Brumberg and Modigliani
Learn about this topic in these articles:
theories of consumption
- In consumption: The rational optimization framework
…model, first articulated in “Utility Analysis and the Consumption Function” (1954) by economists Franco Modigliani and Richard Brumberg, proposes that households’ spending decisions are driven by household members’ assessments of expenditure needs and income over the remainder of their lives, taking into account predictable events such as a precipitous…
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