The Human Income-Expenditure Balance

Hideaki Tamura

Chapter Chapter 1 in Human Psychology and Economic Fluctuation, 2006, pp 5-29 from Palgrave Macmillan

Abstract: Abstract In this chapter, we put together a “basic human accounting” framework that illustrates the interdependence of various “accounts”—utility, goods, (work) time, and money—with a view to illustrating the importance of various psychological factors and the causal connections between them. We then show that human “demand” derives not from exogenous income as determined by corporate and government investment and the initial allocation of production elements, but from the fact that the utility gained from goods inevitably declines over time. In other words, the concept of “diminishing utility” is at the heart of our analysis.

Keywords: Labor Productivity; Capital Stock; Consumption Good; Total Utility; Monetary Economy (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50563-6_2

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DOI: 10.1057/9780230505636_2

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