Abilities and restrictions of the state control of individual consumption behavior peculiarities

М. Gorbunova, I. Maksimova and Е. Shilina

Public administration issues, 2013, issue 2, 181-198

Abstract: Based on the statement relating to the natural economic individual behavior we suggest that expenditures should be adequate to adjusted earnings. In spite of this fact we believe that some fluctuations are available because of changing in discrete individual behavior. In this research, however, we concluded and confirmed that fluctuations are not the separate cases, moreover there is the world trend concerning Russian Federation also. According to this trend the special consumption philosophy exists: the share of consumption in household spending is increasing from the East to the West, down to the consumption excess of the revenues. The economic and political background is likely to be the reason of that but the primary factor is mentality of population that settled in certain economic region, and further as the authors consider the mentality is connected with the deeper ground - the age of civilization of the territory. The younger is civilization, the greater is the extent of risk awareness, with self-indulgence including.

Keywords: economic behavior; correlation between revenues and consumption; income per capita; the rate of tax; cost of living; the income differentiation; “life by depth”; credit activity; the marginal propensity to consume and to save; the average propensity to consume (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:nos:vgmu00:2013:i:2:p:181-198

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