This article does not cite any sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Relative income hypothesis" – news · newspapers · books · scholar · JSTOR(May 2021) (Learn how and when to remove this message)
The relative income hypothesis was developed by James Duesenberry and states that an individual's attitude to consumption and saving is dictated more by his income in relation to others than by abstract standard of living. The percentage of income consumed by an individual depends on his percentile position within the income distribution.
It also hypothesizes that the present consumption is influenced not merely by present levels of absolute and relative income but also by levels of consumption attained in a previous period. It is difficult for a family to reduce a level of consumption once it is attained. The aggregate ratio of consumption to income is assumed to depend on the level of present income relative to past peak income.
and 24 Related for: Relative income hypothesis information
The relativeincomehypothesis was developed by James Duesenberry and states that an individual's attitude to consumption and saving is dictated more by...
The permanent incomehypothesis (PIH) is a model in the field of economics to explain the formation of consumption patterns. It suggests consumption patterns...
called the relativeincomehypothesis. By that theory, an individual's consumption and savings rate is more dependent on their incomerelative to those...
relativeincomehypothesis. By the end of the Second World War Kuznets moved into a new research area, related to the tie between changes in income and...
cycle incomehypothesis for details. The life-cycle model of consumption suggests that consumption is based on average lifetime income instead of income at...
Easterlin hypothesis (Easterlin 1961, 1969, 1973) states that the positive relationship between income and fertility is dependent on relativeincome. It is...
Positional externalities originates from Duesenberry's RelativeIncomeHypothesis. This hypothesis challenges the conventional microeconomic model, as outlined...
spending.) Econometric test of the hypothesis has been difficult because countries with similar levels of per capita income are generally located close to...
(2006). The relative deprivation-gratification continuum and the attitudes of South Africans toward immigrants: a test of the V-curve hypothesis. Journal...
utility, u(c) = log c, and the income effect and substitution effect on saving exactly offset. A time-varying relative risk aversion can be considered...
in information technology has increased the relative demand for higher-skilled workers. Superstar hypothesis – Compensation in many sectors turned into...
Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income and economic inequality among...
Aggregate demand Absolute incomehypothesis Life cycle hypothesis Measures of national income and output Permanent incomehypothesis Algebraically, this means...
in terms of relative or absolute mobility. Absolute mobility looks at a person's progress in the areas of education, health, housing, income, job opportunities...
absolute poverty compares income against the amount needed to meet basic personal needs, such as food, clothing, and shelter; relative poverty measures when...
capital market hypothesis is often held up for particular criticism because liquidity constraints invalidate the assumed lifetime incomehypothesis.[citation...
known as normalized root-mean-square deviation (NRMSD), percent RMS, and relative standard deviation (RSD), is a standardized measure of dispersion of a...
microeconomic hypothesis first proposed in 1932 by John Hicks in his work The Theory of Wages. He proposed that "a change in the relative prices of the...
William Trufant Foster. More recently, the so-called "Rajan hypothesis" posited that income inequality was at the basis of the explosion of the 2008 financial...
statisticians call an alternative hypothesis is simply a hypothesis that contradicts the null hypothesis. Working from a null hypothesis, two broad categories of...
secret to growth." Studies on income inequality and growth have sometimes found evidence confirming the Kuznets curve hypothesis, which states that with economic...
change in the consumption of a good relative to a change in consumers' wealth (as distinct from changes in personal income). Measuring and accounting for the...
field known as law and economics. convergence The hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies...
Global Information