Song Gyu-mo's point of view 181 The consumption function needs a new definition

The consumption problem is one of the most important issues in the economy, and the consumption function is naturally one of the economic contents that need to be studied. Keynes was the first to propose the concept of the consumption function, arguing that total consumption is a function of total income. According to Kuznets, long-term consumption is a fixed rate of income, and in the long run, the average propensity to consume is broadly stable. According to Smithes, in the short run, consumption is a function of current income, and the level of consumption decreases proportionally with the increase of current income level, while savings increase with the increase of current income level; In the long run, consumption is affected by many other factors in addition to income. Dusenberry believes that people's consumption is comparable to each other, and at the same time, consumption also has a certain inertia. Friedman argues that people's consumption depends primarily on a lasting income. Modigliani explained the problem of consumption through the life cycle theory, arguing that consumers arrange their optimal consumption according to the life cycle. Some scholars have added rational expectation factors to the consumption function, and rational expectation has also become an important variable affecting consumption. Wait a minute.

In short, there are two problems and deficiencies in the existing consumption functions: one is that only a person's consumption utility satisfaction in the present life is considered, and no or less consideration is taken into account the arrangement of a person's consumption utility in the next life; Second, more consideration is given to the consumption utility at the material level, and there is a lack of consumption utility consideration at the spiritual level. Personally, I believe that a person's consumption function, in terms of consumption utility satisfaction, should not only consider the utility satisfaction of the present life, but also consider the utility satisfaction of the next life, especially in some societies with strong religious culture, some of people's consumption is highly related to the satisfaction of the utility of the afterlife, and even pay more attention to the satisfaction of the utility of the afterlife. In addition, people's consumption is not only based on the satisfaction of material utility, but also about the satisfaction of spiritual utility. In terms of consumption cost consideration, not only material cost expenditure is considered, but also spiritual cost expenditure is considered, not only the material cost and spiritual cost expenditure of the present life, but also the material cost and spiritual cost expenditure of the next life, and the final consumption cost consideration is the sum of the costs of these four aspects.

Just as there is a law of diminishing margins in material returns, there is also a law of diminishing marginal returns in terms of spiritual gains. For example, if a person has too many honors, the marginal spiritual benefits brought by increasing the honor of the same level will inevitably decrease, unless the later honor level is higher than the previous honor level, and the marginal return may increase.

Under the law of diminishing marginal returns, a person's material gains and spiritual gains also have a certain degree of marginal substitution characteristics. For example, in a state of material poverty, a person may lose spiritual gains more in exchange for material gains, and in the case of material wealth, a person may pay more attention to the pursuit of spiritual gains, and charity may also be more. It is often said that Cang Liao knows etiquette and knows honor and disgrace when he has enough food and clothing, which reflects this situation. In addition, as a person's income increases, they may pay more attention to the relative utility of consumption, such as some conspicuous consumption, which is also related to increasing spiritual gains. Of course, there are many exceptions to the above cases, and the conclusions cannot be absolute.

In a specific environment, there is also the problem of consumption alienation, that is, the consumption process denies the true value of the consumer's own existence. There are many reasons for the alienation of consumption. Human greed and selfishness, unreasonable division of labor structure, unfairness of the system, irrationality of culture, etc., may lead to the problem of consumption alienation. Okay, thank you, thank you.

Song Guiwu's view 181 Consumption function needs new definition

Consumption is one of the most important issues in economy, and consumption function is naturally one of the economics contents that need to be studied. Keynes first put forward the concept of consumption function. He believed that total consumption is a function of total income. Kuznets believed that long-term consumption is a fixed ratio of income, and in the long run, the average consumption tendency is generally stable. Smithers believed that in the short term, consumption is a function of current income, and the consumption level decreases with the increase of current income level, while the savings increase with the increase of current income level; in the long run, consumption is affected by many other factors besides income. Duesberg believed that people's consumption exists the phenomenon of keeping up with each other, and at the same time, consumption has a certain inertia. Friedman believed that people's consumption mainly depends on their permanent income. Modigliani explained the consumption problem through the life cycle theory, and believed that consumers arrange their best consumption according to the life cycle. There are also some scholars who add rational expectation factors into the consumption function, and rational expectation has also become an important variable affecting consumption. And so on. In a word, there are two problems and deficiencies in the existing various consumption functions: one is that only one person's present consumption utility is satisfied, without considering or less considering one's arrangement for the afterlife consumption utility; the other is that more consideration is given to the consumption utility on the material level, while less consideration is given to the consumption utility on the spiritual level. Personally, one's consumption function, in terms of consumption utility satisfaction, should not only consider the satisfaction of the present utility, but also the satisfaction of the afterlife utility. Especially in some religious culture society, some of people's consumption is highly related to the satisfaction of the afterlife utility, and even attaches more importance to the satisfaction of the afterlife utility. In addition, people's consumption is not only considered the satisfaction of material utility, but also the satisfaction of spiritual utility. In terms of consumption costs, not only consider the material costs, but also consider the spiritual costs, not only consider the material costs and spiritual costs of the present, but also consider the material costs and spiritual costs of the afterlife. The final consumption cost is the sum of the four aspects of cost. As there is a law of diminishing marginal returns in material income, there is also a law of diminishing marginal returns in spiritual income. For example, a person with too much honor, the marginal spiritual income brought by the increase of the same level of honor will decrease, unless the latter honor level is higher than the former honor level, the marginal returns may increase. Under the law of diminishing marginal returns, a person's material income and spiritual income, both also have a certain degree of marginal substitution characteristics. For example, in the state of material poverty, a person may lose more spiritual income in exchange for material income, a person in the case of material affluence, may pay more attention to the pursuit of spiritual income, charity may be more. People often say, "the grain is full and the etiquette is known, and the clothes and food are enough to know honor and disgrace", reflecting this situation. In addition, with the increase of income, a person may pay more attention to the relative utility of consumption, such as conspicuous consumption, which is also related to the increase of spiritual income. Of course, there are many exceptions to the above situation, and the conclusion can not be absolute. In a specific environment, there is also the problem of consumption alienation, that is, the consumption process denies the true value of the consumer's own existence. The reasons for consumption alienation are many. Human greed and selfishness, unreasonable division of labor structure, institutional injustice, and irrational culture may lead to consumption alienation. OK, thank you, thank you.