Yamaguchi journal of economics, business administrations & laws

The Economic Society of Yamaguchi University

PISSN : 0513-1758
NCID : AN00243258

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Yamaguchi journal of economics, business administrations & laws Volume 70 Issue 5
published_at 2022-01-31

On consumption decisions : focusing on budget decisions for each expense item

消費の決定について : 費目ごとの予算の決定を中心に
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山口経済学雑誌70-5-001.pdf
We will discuss how a household determines the budget allocation to consumption goods and decides consumption and savings. Microeconomics explain that a consumer maximizes utility under budget constraint. However, in reality, a consumer first determines the budget for each consumption item such as food and clothing and then determines individual consumption goods to buy.