IDEAS home Printed from https://ideas.repec.org/h/spr/advchp/978-4-431-54535-4_3.html
   My bibliography  Save this book chapter

Households and Consumption

In: Elements of Neo-Walrasian Economics

Author

Listed:
  • Takashi Negishi

    (The Japan Academy
    The University of Tokyo)

Abstract

Consumption of goods in households is the main purpose and the final result of a large part of economic activity. To demand for the consumables, however, households have to supply the service of factors of production to earn their incomes in the modern market economy. The role of the theory of the household is, therefore, to explain not only its demand for goods (the consumables) but also its supply of goods (the service of factors of production). But, fortunately, the households’ supply of the factors of production can be easily explained by an extension of the theory of their demand for goods. This is the reason why we can start with the theory of the behavior of a consumer who spends the given income to demand for the consumers’ goods. While the theory of the firm is developed as the theory of the constrained maximization, i.e., the maximization of profit subject to the production function, the theory of the consumers’ behavior also considers the constrained maximization, i.e., the maximization of utility subject to the budget constraint.

Suggested Citation

  • Takashi Negishi, 2014. "Households and Consumption," Advances in Japanese Business and Economics, in: Elements of Neo-Walrasian Economics, edition 127, chapter 0, pages 29-50, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-54535-4_3
    DOI: 10.1007/978-4-431-54535-4_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advchp:978-4-431-54535-4_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.