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Some Consumption Boundaries In The Standard Framework During Transition


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  • Livia CHISAGIU

    (Institute of National Economy – Romanian Academy)


Comparative to standard consumption based on the theory of permanent income within a functional, mature market economy, we have identified for the population’s households consumption in Romania during transition some boundaries in this respect: - Firstly, the existence of a completely imbalanced structure of expenditures having as dominant the food consumption; - Consequently, an exaggerated ratio between two large expenditure segments which we have designated as compulsory expenditure/optional expenditure, to the detriment of the second segment; - Finally, probably the most important feature was the high contribution on sub-periods (of incomes and monetary expenditures decreases) of selfconsumption in satisfying the consumption needs which triggered for a good part of them the satisfaction outside market transactions, selfconsumption building itself into a substitute of negative saving.

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Bibliographic Info

Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

Volume (Year): 34 (2012(XXII))
Issue (Month): 1(43) (June)
Pages: 157-175

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Handle: RePEc:ine:journl:v:1:y:2012:i:43:p:157-175

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Keywords: self-consumption; positive saving; negative saving; compulsory expenditure/optional expenditure;

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