ADVANCED MACROECONOMICS Lecture 8 Consumption 电子科大经管学院马捷
ADVANCED MACROECONOMICS Lecture 8 Consumption 电子科大经管学院 马捷 1
Contents Review Consumption under Certainty -Consumption under Uncertainty Empirical Application ·Aggregate data Homework ·Household data Optimal Lifetime Portfolio 电子科大经管学院马捷 2
Contents Review Consumption under Certainty Consumption under Uncertainty Empirical Application • Aggregate data • Household data Optimal Lifetime Portfolio 电子科大经管学院 马捷 Homework 2
Review A.Consumption: C=fY)） B.Marginal Propensity of Consumption, MPC=f(Y) 电子科大经管学院马捷 3 元元元元元
Review A. Consumption： C= f(Y) B. Marginal Propensity of Consumption, MPC=f’(Y) 电子科大经管学院 马捷 3
Example of Decreasing MPC Y() C(2) C/Y(3) MPC(4) A 9000 9110 1.01 B 10000 10000 1.00 0.89 C 11000 10850 0.99 0.85 D 12000 11600 0.97 0.75 E 13000 12240 0.94 0.64 F 14000 12830 0.92 0.59 G 15000 13360 0.89 0.53 电子科大经官学阮与捷 元元元元元
Example of Decreasing MPC Y(1) C(2) C/Y(3) MPC(4) A 9000 9110 1.01 B 10000 10000 1.00 0.89 C 11000 10850 0.99 0.85 D 12000 11600 0.97 0.75 E 13000 12240 0.94 0.64 F 14000 12830 0.92 0.59 G 15000 13360 0.89 0.53 电子科大经管学院 马捷 4
MPC and C Curve C Short term C curve 4 C=C+cY 3 2 1 0 1 2 3 4 电子科大经管学院马捷 5
MPC and C Curve Short term C curve C= Ｃ + ｃ Y 0 1 1 2 2 3 3 4 4 C Y 电子科大经管学院 马捷 5
Example of Constant MPC Y(1) C(2) CY(3) MPC(4) a 0 0.75 00 b 1 1.5 1.50 0.75 C 2 2.25 1.125 0.75 d 3 3.0 1.0 0.75 e 4 3.75 0.936 0.75 f 5 4.50 0.9 0.75 g 6 5.25 0.875 0.75 电子科大经管学院马捷 6 元 元元元元
Example of Constant MPC Y(1) C(2) C/Y(3) MPC(4) a 0 0.75 ∞ b 1 1.5 1.50 0.75 c 2 2.25 1.125 0.75 d 3 3.0 1.0 0.75 e 4 3.75 0.936 0.75 f 5 4.50 0.9 0.75 g 6 5.25 0.875 0.75 电子科大经管学院 马捷 6
MPC and C Curve 45°线 5 C MPC=0.75 消费函数 4 e 3 △C=0.75 2 b △YD=1 通子科大经备学院马建 5 7
消费函数 1 2 3 4 5 012345 a b c d e f 45o 线 C = 0.75 MPC= 0.75 MPC and C Curve YD = 1 C Y 电子科大经管学院 马捷 7
Change of Consumption A.Movement of consumption 4 point 3 Reason:Change 2 b of disposable income 0 电子科大经管学虎马捷2 3 4 8
Change of Consumption A. Movement of consumption point Reason: Change of disposable income a b c d e f 0 1 1 2 2 3 3 4 4 电子科大经管学院 马捷 8
Change of Consumption in AD-AS 4 3 AS 2 AD2 1 AD1 0 子科大经学院马捷 9
Change of Consumption in AD-AS 1 2 3 4 012345 AS AD1 P Y AD2 电子科大经管学院 马捷 9
Absolute Income Hypothesis The consumption level of a household depends not on its relative income but on its absolute level of income C=C+cY C>00<c<1 0<MPC<1, MPC<0,MPC<APC=C/Y 电子科大经管学院马捷 10
Absolute Income Hypothesis The consumption level of a household depends not on its relative income but on its absolute level of income 0<MPC<1, , MPC<APC=C/Y 电子科大经管学院 马捷 0 dY dMPC C C0 cY, C0 0, 0 c 1 10