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Эффект Веблена, Предельная Полезность Денег И Денежная Иллюзия
[Veblen effect, marginal utility of money, and money illusion]

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  • Malakhov, Sergey

Abstract

The paper discovers microeconomic mechanism of Veblen effect as well as of Giffen case as results of the negative marginal utility of money. The marginal utility of consumption also becomes negative. The total consumption-leisure utility is increased due to the increase in leisure time. This overall effect results in the phenomenon of money illusion on the macroeconomic level. This general effect has deep historical and institutional grounds and, in order to minimize its disequilibrium economic consequences it needs more specific institutional regulation.

Suggested Citation

  • Malakhov, Sergey, 2013. "Эффект Веблена, Предельная Полезность Денег И Денежная Иллюзия [Veblen effect, marginal utility of money, and money illusion]," MPRA Paper 51014, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51014
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    References listed on IDEAS

    as
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    8. Eldar Shafir & Peter Diamond & Amos Tversky, 1997. "Money Illusion," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 341-374.
    9. Sergey MALAKHOV, 2013. "Money Flexibility And Optimal Consumption-Leisure Choice Under Price Dispersion," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 4(1), pages 77-88.
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    More about this item

    Keywords

    money flexibility; money illusion; Veblen effect; consumption-leisure choice;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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