Full Description
This book examines the historical and methodological development of the consumption function in economics discourse. It provides a discussion of the key stages in the theoretical evolution of the concept, from the beginning of the 20th century through to the modern day. Particular attention is given to the ways in which Thorstein Veblen, John Maynard Keynes, James Duesenberry, Franco Modigliani, Richard Brumberg, and Milton Friedman conceptualized consumption. Further, it examines the latest theoretical and methodological developments within the neoclassical as well as the heterodox economics traditions. By connecting the history of consumption function to the methodological frameworks in which consumption theories were devised, the work also brings into the fore the important economic policy implications associated to various consumption formulations.
This book offers insight into how different schools of economic thought have defined consumption and how these ideas inform modern economic theories and political discussions. It will be of interest to students and researchers working on macroeconomic policy, economic theory, and the history of economic thought.
Contents
1. Introduction.- 2. Ideas on Consumption Before Keynes.- 3. J. M. Keynes and the Role of Consumption.- 4. Post-War Empirical Studies.- 5. James Duesenberry and the Relative Income Hypothesis.- 6. Neoclassical Alternatives to Keynes and Duesenberry.- 7. The Emergence of the Neoclassical Consumption Function.- 8. Macroeconomic Policy Implications.- 9. Conclusions.
