Convergence of Consumption Structure

Tomas Cahlik (), Tomáš Honzák, Jana Honzáková, Marcel Jiřina and Natálie Reichlová ()
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Tomáš Honzák: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/
Jana Honzáková: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/
Marcel Jiřina: Czech Technical University in Prague, Faculty of Electrical Engineering, Center of Applied Cybernetics, Prague, Czech Republic
Natálie Reichlová: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/
Authors registered in the RePEc Author Service: Natálie Švarcová ()

No 99, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: Purpose of this paper is to analyze the convergence of the consumption structure, both at the empirical and the theoretical levels. The basic empirical result is that the consumption structure converges quite quickly. We feel that the income effect is not sufficient to explain this high speed. That is why we introduce some post-Keynesian motives of consumer behaviour. We present a model of the dynamics of consumption structure and describe different simulation experiments with this model. These experiments are based on the actual data about consumers in the Czech Republic and in Germany (in fact, we approximate by German consumers the old EU members’ consumers). The results of simulations show that the behavior of the model really leads to the convergence of the consumption structure in the Czech Republic and the old EU members, so the post-Keynesian motives of consumer behavior are among possible explanations of the empirical fact of convergence.

Keywords: fiscal convergence; consumption; post-Keynesian theory; model; simulation (search for similar items in EconPapers)
JEL-codes: C6 D1 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005, Revised 2005
New Economics Papers: this item is included in nep-mac, nep-pke and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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