home Mortgage Consumer spending (Consumer Spending) is. Consumer spending and factors that determine them Consumer spending in the national economy: concept and influencing factors

Consumer spending (Consumer Spending) is. Consumer spending and factors that determine them Consumer spending in the national economy: concept and influencing factors

The finances of the population are distributive and redistributive monetary relations regarding the preservation, acquisition of a higher social status or its forced lowering, as well as solving the problems of the current and future stages of the life cycles of the family and citizen. At the same time, there is a redistribution of property between individuals, their interaction with the budget, investment activities, participation in collateral, insurance, as well as the redistribution of funds allocated to meet personal needs, etc.

Public finances are an element of decentralized finance. Public finances are important and growing in importance:

- to ensure the social stability of society;

- to form the class structure of society;

– as a source of budget replenishment (all over the world, the share of income tax with individuals);

- as a source of investment in the development of the country's economy;

- as a source of financing the government's internal debt;

– to form the insurance fund of insurers, etc.

Citizens' finances are objectively necessary as a tool for resolving contradictions between the possibility of obtaining income in various periods of a citizen's life, the random nature of economic results during a period of active activity and the need to create a family, raise children, ensure stability, and improve social status.

A citizen goes through the stages of growing up, vigorous activity, and then advanced years come. Citizens create families. In marketing, it is known that a family goes through the following stages: a family without children; complete family at the first stage of development (small children); complete family at the second stage of development (adult children); "empty nest (1st stage)" - elderly spouses without children; "empty nest (2nd stage)" - widowed single citizens.

At each stage of life, the citizen and the family have different opportunities for earning income. At the same time, at each stage, they have their own needs, solve the tasks corresponding to these stages, and satisfy their needs in various ways. The risks to which a citizen and a person are exposed at various stages of life are also different. Therefore, the possible damage during the realization of these risks differs in nature and volume.

The role of the finances of the population is that they allow the citizen to ensure the stability of consumption and maintain belonging to a certain social class in the event of random fluctuations in his income.

A social class is a relatively stable group of people within society, which is characterized by the presence of similar values, interests and behavior among its members.

Population finance interacts with centralized finance (budgets and off-budget funds) and decentralized finance - enterprises of various forms of ownership and the financial market.

The population sells their labor, goods and services of their own production to the state, pays taxes, fees, insurance premiums. The state influences the size of the household budget through the payment of cash transfers, through public goods in natural form and government pricing.

Legal entities provide households with paid work, goods and services, credit resources, profits, dividends, interest, and rent if they have appropriate property (Fig. 4).

Budget funds

Rice. 4. Place of public finances in the financial system:

1-taxes, 2-transfers, 3-loans, 4-insurance contributions, 5-social support, 6-savings, 7-%, profit, rent, 8-wages, 9-cost of goods and services, 10-cost of labor strength

8.2. Population income

Incomes of the population - a part of the national income created in the process of production and intended to meet the material and spiritual needs of the members of the economy.

The income of a citizen depends on belonging to a certain class, lifestyle, health, ability to work, labor market conditions, market opportunities and threats, risks in practice, and some other factors.

Cash income is classified:

1. depending on the source of income:

- wages of hired labor;

– income from entrepreneurial activity;

- income from property (dividends, interest on securities and deposits, rent, from the sale of property);

– state social payments (transfers) from the budget and off-budget funds;

– insurance compensation and others.

2. depending on the uniformity of income:

– regular (wages, rent, etc.);

- periodic (income on securities, royalties, etc.);

- accidental or one-time (gifts, income from the sale of property).

3. depending on the reliability of the receipt:

- guaranteed (state pensions, income from government loans);

– conditionally guaranteed (wages);

- non-guaranteed (fees, commission).

The absolute size of the monetary income of the population, accrued wages and appointed monthly pensions, expressed in prices of the corresponding years (actual prices), are called their nominal indicators.

The real amounts of the population's cash income, accrued wages, assigned monthly pensions are relative indicators calculated by dividing the indices of the nominal amount of the population's cash income, accrued wages, assigned monthly pensions by the consumer price index for the corresponding time period.

Monetary incomes of the population include incomes of persons engaged in entrepreneurial activities, paid wages of employees (accrued wages adjusted for changes in overdue debts), pensions, allowances, scholarships and other social transfers, income from property in the form of interest on deposits, securities, dividends and other income. Monetary income, net of mandatory payments and contributions, is the disposable monetary income of the population.

Average per capita money incomes are calculated by dividing the total amount of money incomes by the number of the present population.

The average monthly nominal accrued wages for the period are calculated on the basis of information received from enterprises and organizations, based on the accrued wage fund of employees, divided by the average number of employees and the number of months in the period.

The average amount of assigned monthly pensions is determined by dividing the total amount of assigned monthly pensions at the end of the reporting year by the corresponding number of pensioners registered with the authorities social protection population.

The remuneration of employees is determined by the sum of all remuneration in cash or in kind paid by the enterprise to an employee for work performed during the reporting period. Remuneration of employees is recorded on the basis of accrued amounts and includes actual contributions to social insurance (contributions to the state pension fund, employment fund, fund social insurance, mandatory fund health insurance), taxes on income and other payments that are payable by employees, even if they are actually withheld by employers for administrative purposes or for other reasons, and are paid directly to the social insurance authorities, tax services on behalf of the employee.

Hidden wages of employees are determined on a balance sheet basis as the difference between the total expenditures for all needs of households, including their growth financial assets, and formally registered income.

Calculations to determine hidden wages are made for the economy as a whole, without breakdown by industry, type of activity and territory.

8.3. Population spending

Monetary expenditures of the population are actual expenditures for the acquisition of material and spiritual values, including consumer expenditures and expenditures not directly related to consumption. Cash expenditures play an important role in the reproduction of the labor force, ensure the formation and development of the market for goods and services, stock market. The population is the main consumer of the social sphere.

Monetary expenses and savings of the population include expenses for the purchase of goods and services, mandatory payments and various contributions (taxes and fees, insurance payments, contributions to public and cooperative organizations, interest on loans, etc.), an increase (decrease) in savings in deposits , valuable papers ah, the change in loan debt, the purchase of real estate, the purchase of foreign exchange.

basis financial activities of citizens is the process of distributing citizens' income to consumption funds, savings, tax payments, and self-insurance.

The consumption fund is designed to meet the personal needs of the family.

The accumulation fund will be used in the future to purchase valuable assets (land, houses, vehicles), or as capital for profit (formation of initial capital for commercial activities, capitalization by investing in securities and bank deposits).

The accumulation fund can be divided into real estate investment funds, durables, bank savings certificates, securities, savings insurance.

These funds can be replenished from dividends from investments, savings insurance, collateral, donations, inheritance, royalties and royalties, etc. In addition, the need to create an accumulation fund arises for recreation, treatment, and ensuring a decent life in old age.

Household cash expenditures are classified:

1. according to the degree of regularity:

- permanent (for food);

– regular (for clothes);

- one-time (durable goods).

2. according to the degree of need:

- necessary (priority) - for food, clothing, treatment;

- desirable (secondary) - for education;

- others.

3. by purpose of use:

- consumer spending (for the purchase of goods and services);

– payment of mandatory and voluntary payments and contributions;

- savings and savings (in deposits and securities; purchase of foreign currency; increase in money in the hands of the population).

Consumer spending accounts for 3/4 of all costs. Their value is determined by the volume of cash income, the level of personal and family needs, the level of retail prices; climatic and geographical conditions of life, etc. Belonging to a certain social class obliges an individual to lead a lifestyle inherent in this class. To ensure the possibility of practically following value ideas and behavior, satisfying interests and needs, a certain level of monetary income is necessary.

Mandatory payments include taxes, fees, duties, deductions, which are levied by executive authorities to the budgets of various levels and off-budget funds. Voluntary payments are made on their own initiative in insurance companies, non-state pension funds, charitable organizations, etc.

The stability of consumption is ensured by the creation of funds by a citizen Money and their redistribution. Surplus funds generated in favorable years are distributed and directed to specific investments with their subsequent redistribution in less favorable years. An important role in this is played by life insurance, property insurance, liability insurance, and commercial risks.

For the same purposes, monetary savings are created in the form of bank deposits, monetary and in-kind self-insurance funds, investments in securities, antiques, real estate, etc. are used.

Well-known theoretical developments that explore the relationship of income, consumption, accumulation, investment activity citizens (individuals) with the tax system.

A great contribution to the development of the theory of population finance (personal finance) was made by the 1985 Nobel Prize winner in the field of economics, Franco Modigliani. He put forward a hypothesis about the life cycle of savings, according to which every citizen will sooner or later leave working age, his income will decrease, and he will be forced to use his savings to maintain the previous standard of living. Therefore, we must accumulate assets during active life for the period when we can no longer be engaged in work activities. In the ideal life cycle model of savings, assets are depleted at the same time as the end of their owner's life. It is on this very simple statement that much of the modern theory of savings is based.

Ministry of Education and Science of the Russian Federation Federal Agency for Education GOU VPO All-Russian Correspondence Institute of Finance and Economics Department of Economic Theory

COURSE WORK

on economic theory on the topic:

Modern analysis of the structure of consumption, savings and factors that determine them

Kirov - 2011

Introduction

1. Consumer spending and factors that determine it

2. Savings: essence, types and main factors. Relationship between savings and consumption and their impact on the volume of national income

3. Features of savings and consumption in Russian economy

4. Workshop

Conclusion

Bibliography

Introduction

The most important method of studying economic theory is the method of equilibrium analysis.

Turning to the study of the economy at the macro level, let us ask the question: is this equilibrium approach applicable in the analysis of categories of aggregate national economic indicators, i.e. national income, investment, savings, employment, etc.? Of course, the answer will be positive. However, on the scale of macroeconomics, the balance between income and expenditure of society comes to the fore. This is a peculiar expression of the balance between supply (created national income) and demand (used national income).

The total income of society is the national income. And the total expenditure, in which consumption is the main component, and therefore it is important to understand the main factors that determine consumption expenditure, is the expenditure of national income on consumption and accumulation (investment). However, not all income received by the population is fully spent; some of them are saved, i.e. postponed. Thus, the subject of analysis of this term paper there will be not only national income, consumer spending and the role of objective and subjective factors that affect the total amount of resources spent by society on consumption, but also savings (their essence, types and main factors), and the relationship between savings and consumption and their impact on national income. consumer spending savings

These issues will be covered in the first and second theoretical sections of this work, while the third section will be devoted to the analysis of the features of savings and consumption in the Russian economy.

1. Consumer spending and factors that determine it

Aggregate demand, which is proposed to be stimulated in the framework of the Keynesian approach, consists of the demand for consumer goods ( C), for investments ( I), government spending ( G), and net exports ( X n):

AD = C + I + G + X n .

According to the classical concept, the level of total expenditure, determined by total income, is always sufficient to purchase products produced at full employment. The Keynesian approach, casting doubt on this statement, proceeds from the fact that the volume of demand of individual economic entities is formed under the influence of various incentive motives, including psychological factors. From the time of Keynes to the toolkit economics included the concepts of “inclination”, “expectations”, “preference”, etc. These concepts are already in the form of specific economic indicators allows not only to take into account psychological factors, but also to measure their influence in the analysis of macroeconomic equilibrium.

So, let's take a closer look at the components of total spending. Let's start with the demand for consumer goods - the most important component of aggregate demand ( FROM). Consumption is the use of goods and services to meet current and future needs. As a rule, it (consumption) accounts for more than 50% of the total aggregate demand. This value fluctuates in different countries from 68% in the US to about 52% in Sweden and Russia. But significant social programs in Sweden and their small share in post-reform Russia lead to different consequences for the population's spending on consumption, despite the similarity of indicators. Consumer demand is defined as effective demand, or as the amount of money that is spent by the population on the purchase of consumer goods.

The consumption structure of both an individual and a family is quite individual. People spend money according to their income and lifestyle. However, there are some common priorities. So, it is not difficult to imagine the expenses of any family in terms of their importance, for food, clothing, housing, transport, medicine, education. At the same time, the expenses of low-income families fall mainly on food and the most necessary daily needs. As families' incomes rise, so does spending on clothing, durables, recreation, entertainment, savings, and so on.

Thus, consumption is the main component of total expenditure. Therefore, it is important to understand the main factors that determine consumption costs. There are many factors that affect the level of consumer spending. Consider the possibility of the impact of these factors:

1. The level of current income. The total volume of consumption, as a rule, depends on the total amount of income. The role of the psychological factor influencing consumption is described by J. M. Keynes as follows: “The basic psychological law, on which we can rely not only “a priori”, based on our knowledge of human nature, but also on the basis of a detailed study of experience, is that people tend to increase their consumption as income increases, but not to the same extent as income increases.” (JM Keynes, “The General Theory of Employment, Interest and Money”). The ratio between consumption and the change in income it causes is called the marginal propensity to consume (MPC - marginal propensity to consume):

MPC = ΔC / ΔYd , where

MPC –

ΔC –

ΔYd –

The average propensity to consume (APC) is the share of disposable income that households spend on consumer goods and services.

BUT PC = C / Y d , where

BUT PC – average propensity to consume;

C – increase in consumer spending;

Y d –

The simplest consumption function is:

C = a + b ( Y – T ), where

FROM - consumer spending;

a - autonomous consumption, the value of which does not depend on the size of current disposable income;

b – marginal propensity to consume;

Y – income;

T - tax deductions;

( Y – T ) – disposable income Y d

Let us turn to a graphical analysis of the propensity to consume (Fig. 1).

The x-axis represents net income (after taxes).

The y-axis shows consumption expenditures. If expenses exactly corresponded to incomes, then any point lying on a straight line drawn at an angle of 45 0 would reflect this. But in reality there is no such coincidence, and only part of the income is spent on consumption. Therefore, the consumption curve deviates from the line 45 0 down. The intersection of the line 45 0 and the consumption curve at the point AT means zero savings. To the left of this point, one can observe Negative savings (i.e. expenses exceed income - “life in debt”), and to the right - positive savings. For example, with an income of 7000 rubles. the situation is as follows: E 1 E 0 shows the size of consumption, and the segment E 0 E 2- the size of the savings. The balance of family budgets is observed only at the point AT, because only here there is equality of income and expenditure.

2. Efforts to sell (advertising). The fact that an increase in the total aggregate demand for any one commodity or group of commodities can arise simply at the expense of a decrease in the demand for other commodities is sometimes overlooked by those who extol the virtues of advertising and other sales efforts as means of increasing aggregate demand. However, it is highly possible that an increase or decrease in sales effort can affect total consumer spending at a given income level.

3. The level of well-being (wealth). The amount of wealth has an important influence on consumption. Based on the hypothesis of diminishing marginal utility, it is obvious that the greater the initial amount of wealth, the lower its marginal utility. Therefore, as wealth increases, the propensity to reduce consumption in order to increase future wealth decreases. Ceteris paribus, the more savings a person has, the less his desire to save more (the higher the level of well-being, the higher consumer spending).

4. Expectations. Expectations about the movement of price levels and production volumes can also have a certain impact on the formation of consumption. Thus, expectations of price increases can stimulate current consumption, and vice versa.

5. Taxes. Taxes are paid partly from consumption and partly from savings. Therefore, an increase in taxes will move the consumption curve down. On the contrary, the share of income received from tax cuts will be partially consumed. Thus, tax cuts will shift the consumption curve upwards.

6. Transfers. An increase in transfers means an increase in personal disposable income and, consequently, an increase in consumer spending.

7. Consumer debt (level of household debt). It can be expected that the level of consumer debt will make households want to spend their current income either on consumption or on savings. If household debt has reached such a level that, say, 20% or 25% of their current income is set aside to pay the next installments on previous purchases, then consumers will be forced to reduce current consumption in order to reduce debt.

8. Interest rate on consumer credit. The influence of the interest rate on consumption cannot be unambiguously determined either theoretically or empirically. An increase in the interest rate increases the cost of consumption today relative to the future (the substitution effect). But if the household is a net creditor, an increase in the interest rate also raises its lifetime income, which will lead to an increase in consumption.

9. Price level. An increase in the price level leads to a downward shift in the consumption schedule, while a decrease in the price level leads to an upward shift. This conclusion has a direct bearing on our analysis of consumption factor wealth, since changes in the price level change the real value, or purchasing power, of certain types of wealth. More precisely, the real value of financial assets, the nominal value of which is expressed in money, will be inversely proportional to changes in the price level. This effect is called the wealth effect.

From this follows a noteworthy conclusion: wherever we draw (place) the consumption level curves in Fig. 1, we consider that the price level is constant. This means that the y-axis on this graph plots real, and not nominal (cash) income after taxes.

10. Number of consumers and structural factors. These include: the average family size, the average age of the heads of families, geographical features, the composition of national groups in society, racial characteristics, the level of urbanization, etc.

11. Psychological factors. These, as a rule, include Keynesian “motives for consumption” (pleasure, shortsightedness, generosity, miscalculation, boasting, extravagance).

Each household has to constantly decide which part of the income to spend (consume) today, which part to save for the future - in case of an unforeseen situation, illness, inflation, in order to accumulate funds for the purchase of an expensive thing. One part is spent on current consumption, the other is set aside in the form of savings.

2. Savings: essence, types and main factors. Relationship between savings and consumption and their impact on the volume of national income

Savings is income not spent on the purchase of goods and services within current consumption. They are carried out by both households and firms. The amount of savings is inversely proportional to the amount of consumption. The sources of savings are an increase in production (and income) or a reduction in consumption. The process of making savings is called the term “savings”, and their amount on a national scale is called “gross savings” (sometimes simply “savings”).

The level of savings is characterized by such indicators as the marginal propensity to save and the average propensity to save.

The marginal propensity to save (MPS) is the share of the increase in savings in any change in disposable income:

MPS = ∆S / ΔYd , where

MPS –

∆S – increase in savings;

ΔYd – increase in disposable income.

The average propensity to save (APS) is the share of disposable income that households save:

BUT PS = S / Y d , where

BUT PS – marginal propensity to save;

S – the amount of savings;

Y d – amount of disposable income.

Since personal savings can be defined as "what is not spent" or as "that portion of income after taxes that is not consumed"; in other words, after-tax income is equal to consumption plus saving, then when considering the factors that determine consumption (discussed in the last question), we have considered the factors that determine saving in parallel, it remains to determine their impact:

1. The level of current income. In the short term, as current disposable income rises ARS is decreasing, and APS increases, that is, with an increase in family income, the share of spending on consumption decreases relatively and the share of savings increases relatively. However, in the long run, the average propensity to consume stabilizes, since the amount of consumer spending (and hence the amount of savings) is influenced not only by the size of the current disposable income of the family, but also by the size of the general living income, as well as the amount of expected and permanent income.

The simplest savings function is:

S = - a + (1 - b )( Y – T ), where

S – the amount of savings in the private sector;

a - autonomous consumption;

(1 - b ) – marginal propensity to save;

Y – income;

T - tax deductions;

( Y – T ) – disposable income Y d(income after taxes).

The graph of the propensity to save (Fig. 2) shows the ratio of the increase in savings to the increase in income:

Since what is saved is that part of income that is not consumed, the savings and consumption schedules are, in Samuelson's words, "Siamese twins." The graphs in Figure 1 and Figure 2 complement each other, because savings + consumption = net income.

To build a savings graph, you need to: imagine the abscissa axis in Fig. 2 as a line 45 o from Fig. 1; then you can place a mirror on line 45 o from Fig. 1 - and the graph reflected there will be the image of the savings line in Fig. 2. Dot AT is the level of income when saving is zero. Below it is negative savings; higher than her net positive savings.

3. The level of well-being (wealth). Generally speaking, the greater the accumulated wealth, the greater the amount of consumption and the less the amount of saving at any level of current income.

4. Expectations. Expectations of rising (falling) prices and scarcity of goods (feeling that goods will be plentiful) lead to a decrease (increase) in savings.

5. Taxes. Taxes are paid partly from consumption and partly from savings, so an increase in taxes will shift the savings curve down, and, conversely, the share of income received from tax cuts will be partly saved by households (the savings curve will shift up).

6. Transfers.

7. Consumer debt. If consumer indebtedness is relatively low, household savings may rise unusually, leading to higher indebtedness.

8. Interest rate on consumer credit. In general, it is usually assumed that income effects for net debtors and net creditors cancel each other out at the aggregate level, so that the substitution effect (which affects all households in the same direction) dominates. Based on these considerations, it can be assumed that an increase in the interest rate usually reduces current consumption and increases aggregate saving, although the savings of some creditor households may decrease.

9. Price level.

10. Number of consumers and structural factors.

11. Psychological factors. These, as a rule, include Keynesian “saving motives” (prudence, precaution, foresight, prudence, a tendency to self-improvement, independence, enterprise, greed).

As mentioned above, savings is income not spent on the purchase of goods and services within current consumption, and the amount of savings is inversely proportional to the amount of consumption. What is the relationship between the marginal propensity to save and the marginal propensity to consume? To answer this question, it is necessary to analyze in more detail the essence economic phenomena, which are denoted by the concepts: 1) marginal propensity to consume; 2) marginal propensity to save.

It is quite obvious that if total income increases, then part of this income will be directed to consumption, and the other part to saving. Since there is simply no third option, then, within the framework of common sense, the sum of the change in consumption and saving must necessarily be equal to the change in income:

∆S + Δ C = ΔYd ,

but then: ∆S / ΔYd + Δ FROM / ΔYd = 1.

So the sum M PS and M P FROM for any change in after-tax income must always be equal to one.

M PS + M P C = 1.

This makes it possible to express one indicator in terms of another:

M PS = 1 - M P FROM, or M P C \u003d 1 - M PS .

The marginal propensity to save is one's complement to the marginal propensity to consume.

Traditionally, it is assumed that an increase in savings has a positive effect on economic situation both individual citizens and the country as a whole. Keynes drew attention to the fact that, under certain conditions, an increase in savings can lead to undesirable consequences for the economy.

If the economy is underemployed, an increase in the propensity to save naturally means nothing more than a decrease in the propensity to consume. Reduced consumer demand means it is impossible for producers of goods to sell their products. Overstocked warehouses can in no way encourage new investment. Production will start to decline, mass layoffs will follow, and consequently, a fall in national income (the total income earned by the owners of economic resources) in general and the incomes of various social groups. This is what will be the inevitable result of saving more. The virtue of saving turns into its opposite - the nation becomes not richer, but poorer.

Under conditions of incomplete employment, the “paradox of thrift” manifests itself as an unplanned result of quite conscious actions of individual economic entities guided by their personal ideas about rational behavior.

Graphically, the “paradox of frugality” is illustrated by P. Samuelson, as shown in Figure 3.

On the abscissa axis - national income, on the ordinate axis - savings and investments; line F- the level of ND at full employment.

Line II(investment) is not parallel to the x-axis, because we are talking about productive investments, and they grow depending on the growth of ND.

Line shift SS up, into position S 1 S 1 means an increase in savings. If earlier the equilibrium point E showed the amount of national income equal to 0 N , now the situation has changed. Dot E 1, formed as a result of the intersection

lines II and lines S 1 S 1 shows that the new equilibrium between savings and investment corresponds to a national income of 0 N 1 . Value NN 1 clearly illustrates the reduction of ND. If earlier investments in equilibrium ND were in the amount of EN , now, after the shift in the savings curve, the investment is E 1 N 1 .

The shaded triangle shows how investment opportunities shrink as a result of increased savings; line segment EE 0 shows how much investment has been reduced. The paradox lies precisely in the fact that the increase in savings reduces rather than increases investment - the conclusion is that the result is a fall in national income.

Therefore, from an economic point of view, savings represent that part of the income of society (national income), which is called upon to go to accumulation, expansion of production. In Russia, gross saving makes up about a third of the national fund.

3. Features of savings and consumption in the Russian economy

In the Soviet Union during the period of planned economy, there was no savings market in the classical sense of the term, i.e. as an orderly financial turnover, in which interest is an incentive for deposits in banks, in enterprises, in debt obligations in order to increase future consumption. For such a market, it is important not only that the choice of the form of accumulation by the population can be the basis for the adoption investment decisions.

In Soviet society, money was accumulated for future purchases and was in no way associated with investment decisions, which is natural for a system in which there was no place for private economic initiative. The prerogative of making investment decisions belonged to the center, and in accordance with the doctrine of “preferential development of the production of means of production in comparison with the production of consumer goods”, most of the investment resources were directed to expanding the production of capital goods, capital accumulation and maintaining a high level of military production.

The transition to a market rather quickly restored the “psychological” inclination of the population to save. Let us recall the active interest of the population in various kinds of financial companies and the emerging securities market. However, the process of creating a savings market has acquired, for a number of reasons, a destructive character. Among the reasons are the creation of fraudulent financial companies, the construction financial pyramids and gratuitous confiscation by the state through devaluation, inflation and default.

The current state of the Russian household savings market is far from optimal. We have already listed several explanations for the inefficient system of small private savings in Russia. But still, the main reasons for its underdevelopment are the dominance of the Savings Bank of the Russian Federation and the limited access of potential

clients to information about the real financial condition and policy of banks in the regions, as well as the inability of the majority of private depositors to adequately interpret the available information. From the point of view of economic theory, this problem is characterized as the problem of information asymmetry.

A consequence of information asymmetry is a tendency to oust conscientious economic agents from the market. It was she who was one of the reasons for the relative reduction in the share of commercial banks in the savings market in 1995-1997. and strengthening the positions of Sberbank of the Russian Federation, since only this bank was subject to state guarantees for the safety of deposits. The strengthening of Sberbank's position meant, however, a relative weakening of competition in the market and a slowdown in its development.

The only exception was Moscow, where a group of commercial banks stood out and really competed with Sberbank. One of the most important instrument of competition was the increase in the advertising activity of banks. It should be noted that this method of solving the problem of information asymmetry is relatively expensive. For example, the leading banks, which continued to work with household deposits by the summer of 1998, spent more than $15 million on advertising in newspapers and magazines in 1995 alone.

In general, despite certain positive developments observed in the market in 1997, by mid-1998 organized market private savings remained very underdeveloped, and its leading operators were not very competitive. All this significantly aggravated the consequences of the August crisis.

Assessing the prospects for the development and recovery of the savings market, it should be noted that in fact the state must solve two problems: creating an effective mechanism for guaranteeing deposits of private depositors; ensuring the proper level of competition in the market

banking services. Without the solution of the first task, it is difficult to count on the return of the population's funds to the banking system; without the solution of the second, there will be no internal incentives for the development of the market.

The most important goal state regulation in the household savings market, the goal is to maximize the attraction of private savings to the banking system, regardless of which banks are in question - private or public. At the base banking system, of course, should lie the disclosure by banks of information about themselves and deposit insurance. However, any bank is a rather complicated economic organization and smaller clients often fail to adequately evaluate and interpret information that is already available.

Therefore, for the full disclosure of information about banks, an additional intermediate link is needed that can mediate information flows from banks to potential depositors. Structures carrying out certification of commercial banks could become such a link. Its important distinguishing features should be the continuity of the analysis of information on the state of commercial banks and the high efficiency of providing such information to potential users in an already processed, consolidated form.

Now consider the features of consumption in the Russian economy.

In recent decades, systemic transformations in Russia have led to significant changes in the dynamics and structure of household consumer spending. Positive shifts in the economic and social spheres in the second half of the 1990s in most of them could not compensate for the decline in living standards in the first years of the reforms.

The liberalization of the economy contributed to the expansion of the choice of goods and the rapid development of the service sector, which also significantly affects the shifts in the structure of household expenditures. However, the transition to a market

Russia was accompanied by high inflation, outpacing income growth. The shortage of goods and services was replaced by a shortage of funds. But the need to adapt to new conditions prompted people to look for ways to survive and improve their financial situation. Many had to make adjustments in their lives, in accordance not only with personal income, but also with general trends in the sphere of consumption.

Specific shifts in the use of household budgets primarily depended on the amount of available funds. But in any case, the main place in the structure of personal consumption is occupied by the cost of food.

In Russia, the share of bread and bakery products in the structure of food expenditures has changed especially sharply: it more than doubled and exceeded 12% in 1998. With a sharp drop in the standard of living of Russians, spending on meat and meat products did not decrease as much as one might expect: in 1998 they accounted for over 21% of food expenditures instead of 26% in 1988. The share of fats slightly increased, exceeding 3% in 1998.

Changes in the structure and level of food consumption had an impact on one of the main generalizing indicators of the quality of nutrition - its daily calorie content. In Russia, it is 2240 kcal, although according to the recommendations of the World Health Organization, the daily caloric intake should be at least 2400 kcal.

During the transition to the market, the second place after food in the consumer expenditures of the population was taken by the costs of maintaining a home and, first of all, paying for utilities due to an increase in tariffs for water, gas, electricity and fuel. In recent years, utility bills accounted for 3% of total household consumer spending, but over the past ten years it has more than quintupled.

Essential expenses include buying clothes and shoes. During the years of transformation, they occupied a very modest place in household budgets, yielding not only to food, but also to the maintenance of housing, and in some cases, transport costs. The price factor had a big impact. In Russia, the cost of clothing and footwear in 1999 amounted to about 14%.

One of the most important features of the economic behavior of households during the transition period was the increase in spending on transport and communications services. For most of them, this was due to tariff increases. But for a certain part of citizens, primarily with high incomes, as well as for specialists and entrepreneurs, it is associated with production and business needs and was accompanied by the purchase of personal vehicles, its maintenance, as well as the acquisition of modern means of communication.

With regard to the costs of health care, education, culture, the following can be noted. In Russia, spending on health care and personal hygiene has increased significantly over the past decades. Pensioners have the largest share of expenditures for these purposes.

In most households, the level of spending on education, culture, sports, and leisure activities has decreased. Adaptation of people to new, rapidly changing conditions of life could not but affect their mood, interests and desires. The fall in the standard of living in the first years of the transformation significantly limited the possibility of spending on cultural needs. Partially, these losses were compensated by the purchases of modern cultural devices. But not all families could afford them.

Summing up, we can draw the following conclusions. Positive changes in the economy of the Russian Federation did not lead to adequate shifts in household consumption. Some positive moments appeared only in the last 2-3 years and were expressed in a slight increase in food consumption per capita and a weak trend towards a decrease in the share of food costs in total current consumer spending.

On the whole, in Russia, the quality of life of most families has declined over the years of reforms, which was manifested primarily in an increase in the share of food expenditures. This is also evidenced by the equipping of households with durables, despite the fact that their quality parameters have changed for the better. Expansion of the set available in homes modern technology domestic and cultural purposes is slow. The most important feature of the consumption of durable goods is the achievement of a relatively uniform supply of them to all segments of the population.

The negative aspects in the sphere of consumption should also include a decrease in the share and amount of spending on culture, education and leisure activities, which also indicates a deterioration in lifestyle.

4. Workshop

Consumption that does not depend on income (autonomous consumption) is 1000 rubles. The marginal propensity to consume is 0.5. Based on these data:

1. Plot the consumption and saving function.

2. Determine the equilibrium level of national income.

3. Plot the consumption function, assuming that the marginal propensity to consume has increased to 0.8. How did the position of the graph change in comparison with the initial position (its slope) and what is the equilibrium level of national income.

4. Plot the savings function based on the new conditions.

Solution:

1. The simplest consumption and saving functions have the form C = a + b ( Y – T ) and S = - a + (1 - b )( Y – T ) respectively, where a- autonomous consumption, b – marginal propensity to consume, and ( Y – T ) – disposable income Y d(income after taxes). Substituting the values a, b(their meanings are given in the condition) , and the expression ( Y – T ) replace with the value Y d, we get functions for consumption and saving: C = 1000 + 0,5* Y d and S = - 1000 + (1 – 0,5)* Y d respectively.

To build a graph of the consumption function, we will plot on the axis Y consumption spending, and on the axis X- disposable income. Because consumption expenditure is a dependent variable on disposable income, and the graph of the function C = 1000 + 0,5* Y d is a straight line, then to plot a graph, we need to take two values of disposable income, find the corresponding consumption expenditure values for them () and build a straight line through these two points, which will be the graph of the consumption function. For example, if Y d =0, then C=1000, what if Y d = 1000, then С=1500(values FROM found by substituting the corresponding values Y d into our function C = 1000 + 0,5* Y d), then the graph of the consumption function will look like:

Similarly, we build a graph of the savings function S = - 1000 + (1 – 0,5)* Y d , axis only Y we postpone saving and now savings will be a dependent variable on disposable income. Thus, the graph of the savings function will look like:

2) To determine the equilibrium level of national income, it is necessary to equate income with consumption, i.e. Y d = C, then substituting Y d instead of FROM into our consumption function C = 1000 + 0,5* Y d , we get:

Y d = 1000 + 0,5* Y d , After performing the necessary transformations, we get that

the equilibrium national income is 2000 rubles.

3) Because the marginal propensity to consume has increased to 0.8, then the graphs of the consumption and saving functions will take the form C = 1000 + 0,8* Y d and S = - 1000 + (1 – 0,8)* Y d respectively.

We build the graph of the consumption function in the same way as we did in paragraph 1, so for the function C = 1000 + 0,8* Y d will look like this:

The position of the new graph has noticeably changed: the slope of the graph with the positive direction of net income has become larger (less sharp).

We find the level of equilibrium national income in the same way as it was done in paragraph 2, i.e. into the new consumption function C = 1000 + 0,8* Y d , instead of Y d substitute FROM: Y d = 1000 + 0,8* Y d , from here we obtain that the level of equilibrium national income is equal to 5000 rubles.

4) The consumption function, based on the new conditions, has the form

S = - 1000 + (1 – 0,8)* Y d or S = - 1000 + 0,2* Y d. We build it similarly to the first savings schedule, so the savings function graph, based on the new conditions, will look like:

Conclusion

So start modern analysis consumption and savings put John Maynard Keynes. He was the first to introduce the concept of a consumption function relating current consumption to current income. This approach, which was an important step in the development economic analysis, was subsequently superseded by the multi-period study of consumption and saving, based on the idea that a household allocates its income between consumption and saving in order to maximize utility. At the same time, the choice of volumes of current consumption and savings depends not only on current income, as in Keynesian model, but also on expected future income and interest rates.

The location of the curves of consumption and savings is determined by the following main factors: 1) the level of current income; 2) the level of well-being; 3) expectations; 4) taxation; 5) transfers; 6) household debt level; 6) interest rate on consumer credit; 7) the level of well-being; 8) the number of consumers.

The average propensity to consume and save characterizes the portion, or proportion, of any level of total income that is consumed or saved. The marginal propensity to consume and save measures the portion, or proportion, of any change in total income that is consumed or saved.

Consumption and savings are interrelated and affect one of the main indicators of macroeconomics - national income. With an increase in the propensity to save, the propensity to consume decreases, production decreases, mass layoffs follow, and therefore national income falls.

At present, the savings market in Russia can be assessed as underdeveloped. Citizens prefer to keep their savings at home in foreign currency. The task of creating a savings market is still on the agenda. She is

extremely relevant, since the amount of cash "in stockings" is estimated at billions of dollars, and the country feels a lack of financial resources to overcome the investment crisis.

The simplest option for involving temporarily free funds of citizens in the process of reproduction of material goods is to place them in a bank. In this regard, the creation of favorable conditions for the involvement of citizens' funds in the economy, through the credit mechanism of banks, is the main task for the state in this direction. present stage development.

The structure of Russian household budgets is characterized by a high share of expenditures on food, clothing and footwear. The per capita consumption of a number of essential foodstuffs is significantly lower than in a number of others developed countries. The provision of households with many cultural and household items is still low. By current state spheres of consumption Russia can be attributed to developing countries.

To optimize the structure of consumption, it is necessary to change the wage system. When the majority of citizens have a decent level of income, their use will begin to take on a more rational, more mature form. Much will also depend on how the ratio of prices for food, basic consumer goods and all types of services will develop. As long as food and basic clothing and footwear remain expensive, it is difficult to expect rational shifts in the structure of personal consumption and an improvement in the quality of life in general.

Literature

Textbooks, monographs, collections of scientific papers

1. Course of economic theory: general foundations of economic theory. Microeconomics. Macroeconomics. Fundamentals of the national economy: textbook / ed. Doctor of Economics, prof. A.V. Sidorovich, Moscow State University. M.V. Lomonosov - 2nd ed., revised. and additional - M .: Publishing house "Case and

Service”, 2001. – 382 p. - (series “Textbooks of Moscow State University named after M.V. Lomonosov”).

2. Course of economic theory: textbook / under the general editorship of prof. M.N. Chepurina, Assoc. E.A. Kiseleva - M.: SO "Antip", 1993 - 472 p.

3. Macroeconomics. Theory and Russian practice: textbook. - 2nd ed., revised. and additional / ed. A.G. Gryaznova and N.N. Duma. - M.: KNORUS, 2006. - 688 p.

4. Agapova T.A., Seregina S.F. Macroeconomics: textbook - 3rd ed. / under the general editorship of Doctor of Economics, prof. A.V. Sidorovich - M .: Moscow State University. M.V. Lomonosov, Delo i Service publishing house, 2000. - 416 p.

5. Kiseleva E.A. Macroeconomics. Express course: textbook / E.A. Kiseleva - M.: KNORUS, 2008 - 384 p.

6. Sachs J.D., Larren F.B. Macroeconomics. Global approach: TRANS. from English. - M., Delo 1996 - 848 p.

7. Selishchev. A.S. Macroeconomics. - St. Petersburg: Peter, 2001. - 448 p.: ill. – (Series “Textbooks for Universities”).

8. Economic theory: Proc. for stud. higher textbook institutions / Ed. V.D. Kamaeva. - 7th ed., revised. and additional – M.: Humanit. ed. center VLADOS, 2001 - 640.: ill.

9. McConnell K.R., Brew S.L. Economics: Principles, problems and politics. In 2 volumes: Per. from English. 11th ed. T. I. - M.: Respublika, 1993. - 399 p.: tab., graph.

10. P. Samuelson Economics. Per. from English. T.I. - M .: NPO "ALGON" "MACHINE BUILDING", 1997

11. Economics: textbook / ed. Doctor of Economics, prof. A.S. Bulatov - 4th ed., revised. and additional - M.: Economist, 2005. - 831 p.: ill. - (Homofaber).

Articles from magazines and newspapers

12. Avdasheva S., Yakovlev A. Influence of information asymmetry on the structure of the Russian household savings market // Issues of Economics. 1998. No. 12.

13. Kugaev S.V. Monetary savings of the population - a financial resource of the regional investment market // Social and humanitarian knowledge. 2005. No. 3.

14. Lisin V. Investment processes in the Russian economy // Issues of Economics. 2004. No. 6.

15. Luchkina L. Household consumption in Russia and post-socialist countries of Europe // World economy and international relations. 2001. No. 11.

a macroeconomic indicator that shows the amount of household expenditures on personal consumption of non-durable and durable goods and services and is the main gross national product and a component of aggregate demand

Information on consumer spending, personal and household consumption spending, classification of consumer spending, including justified consumption spending and unjustified consumption spending, induced consumer spending and autonomous consumption spending, the amount of consumer spending and the structure of consumer spending, factors affecting consumer spending , macroeconomic indicators of consumer spending and the impact of consumer spending on financial markets

Consumer spending is, definition

Countries for consumer short-term and long-term use, both produced in the country and imported from abroad, and consumer services. The amount of consumer spending depends on many factors, mainly on well-being. The different consumer spending is represented by a different macroeconomic report published each month.

Consumer spending is household spending on purchases and services.

Element of aggregate demand - consumer spending

Consumer spending is for personal consumption. They can be subdivided into spending on non-durable goods (food, beverages, tobacco, etc.), spending on consumer durables such as furniture, spending on services such as tourism and entertainment; and housing costs in the form of rents or imputations from homeowners.

Consumer spending is the main component of the total or gross national product, the value of which does not change significantly.

Consumer spending is part of the population's monetary expenditures aimed at purchasing consumer goods and services (food, non-food products for personal consumption, alcoholic beverages, fuel, personal services).

Consumer spending is part of the population's monetary expenditures aimed at the purchase of consumer goods and services.

Consumer spending is the total consumer spending of the country's population on goods and services produced both domestically and imported from abroad.

Consumer spending is spending on consumer goods and services in order to meet material and spiritual needs. The amount of personal expenses depends on personal disposable and prices for goods and services.

Consumer spending is part of the national product; total household spending on consumer services and durable and non-durable goods produced domestically and imported from abroad. Personal consumption expenditure consists of autonomous consumption and induced consumption.

Consumer spending is individual spending on consumer goods and services. Such expenditures depend in magnitude on personal disposable income and the prices of goods and services.

Consumer spending is the portion of cash expenditures that households direct directly to the purchase of consumer goods and personal services for current consumption.

Consumer spending is households' cash expenditures on food, non-food items and alcoholic beverages, and services. Expenses that are not included in consumer expenses are fees, mandatory payments, payment of child support, assistance to relatives, and other expenses not related to consumption, as well as all expenses related to the production activities of households (purchase of seeds, livestock, etc. .d.).

The Impact of Consumer Spending on Markets

Impact of consumer spending on the stock market

The dependence of the bond market on consumer spending

On the other hand, the acceleration of indicators can cause a sell-off in the bond market, because such a situation implies a rapid economic growth and higher .

The impact of consumer spending on the foreign exchange market

Biological reproduction of society;

Maximizing the welfare of household members.

Unjustified consumer spending

Unproductive (unjustified) expenses are:

Expenses associated with the irrational use of financial resources, spent without benefit, not giving useful results;

Household expenditures that do not ensure the formation, preservation and development of human capital, the biological reproduction of society and the maximization of the welfare of household members.

Classification of consumer spending by level of income

Consumer spending indicators

Among the cost indicators of personal consumption at include consumer spending of the population, namely: their level, structure and .

The total amount and dynamics of consumer spending in current and comparable periods, their share in the monetary and total incomes of the population (households, families) characterize, on the one hand, the purchasing power of the population, and, on the other hand, the possibilities of the consumer market in terms of meeting solvent demand.

In this regard, the cost indicators of personal consumption are studied in their relationship with incomes and consumer prices in the context of individual socio-demographic groups of the population, types of families (households), etc.

When analyzing indicators of personal consumption in the context of territories, the influence of natural and climatic factors on the structure of consumption is taken into account, national characteristics and cultural traditions. Typical, for example, is a separate study of the consumption of the urban and rural population, the population of large and small cities living in the regions of the Far North, in capital cities, etc.

Level of consumer spending

The level of general consumer spending, as well as the costs of certain groups of goods and services, are calculated, as a rule, on average per capita, for one or one hundred households.

Structure of consumer spending

The structure of personal consumption is characterized by the directions of household expenditures, while expenditures are clearly delineated for the acquisition of material goods, on the one hand, and services, on the other.

Consumer spending accounts for 2/3 to 3/4 of total spending, is the main component of total spending and includes:

Expenses for current consumption, i.e. for the purchase of non-durable goods (these include goods that serve less than one year, but it should be noted, however, that all clothing, regardless of the period of its actual use - 1 day or 5 years - refers to current consumption);

Expenditure on durable goods, i.e. goods that serve more than one year (these include furniture, household appliances, cars, yachts, private jets, etc., with the exception of the cost of buying a home, which is considered not consumer, but investment household spending);

Expenses on services (modern life cannot be imagined without a wide range of services, and the share of expenses on services in the total amount of consumer spending is constantly increasing).

Such a division of goods into short-term and durable goods is rather conditional, since the basis is the principle of how fully the goods are used throughout the year. If the goods are fully used during the year, then it refers to non-durable goods.

Goods that are not used during the year (cars, furniture) are durable goods. But, for example, shoes belong to non-durable goods, although they can sometimes be worn for a decade.

Vegetable oil;

Potato;

Vegetables and gourds;

Fruits and berries;

Bread products (bread and pasta in terms of flour, flour, cereals, legumes).

Consumer spending on alcoholic beverages

To determine the real share of alcoholic beverages in the consumer spending of the population, trade statistics data on the share of alcoholic beverages in turnover are used. The population's consumer expenditures are adjusted by increasing the share of expenditures on alcoholic beverages in total household expenditures.

Consumer spending on non-food items

Non-food product - a product that is not intended for consumption and is not a raw material for cooking, sold to satisfy a variety of consumer demand, for example: clothing, footwear, furniture, cars, Construction Materials, household appliances, etc. In other words, it is a product that is in no way suitable for human or animal consumption.

Expenses for non-food items - expenses for clothes, linen, shoes, fabrics, furniture and household items, cultural and household goods, vehicles, hygiene, perfumery and pharmaceutical products, tobacco products, building materials and other non-food products.

Consumer spending on personal services

The consumption of market services is studied in the following areas:

Rent and utilities, payment for household services, services of preschool and out-of-school institutions, expenses for the purchase of vouchers, for treatment and physical education and sports, expenses for cinema, theaters, spectacles, for passenger transport, including urban, communication services;

Household services include the repair of shoes, clothing, furniture, transport, housing, custom-made construction;

Hairdressing services, etc.;

Transport services, all types of services for the transportation of the population, as well as cargo for the population;

Other services - services of a legal nature (legal consultations, notary offices), state insurance and savings bank services.

Factors affecting consumer spending

Ask yourself what determines the amount of your spending on consumer goods and services.

The amount of consumer income

Most likely, you will answer that the main factor is the amount of your income, since with their growth you will want and be able to spend more. Arguing in this way, John Menard Keynes believed that consumer spending depends on disposable income - the total income that can be spent on the purchase of goods and services.

Efforts to sell goods

The fact that an increase in the total aggregate demand for any one commodity or group of commodities can arise simply at the expense of a decrease in the demand for other commodities is sometimes overlooked by those who extol the virtues of advertising and other sales efforts as means of increasing aggregate demand. However, it is highly possible that an increase or decrease in the amount of sales effort can affect total consumer spending at a given income level.

Consumer Welfare Level

The amount of wealth has an important influence on consumption. Based on the hypothesis of diminishing marginal utility, it is obvious that the greater the initial amount of wealth, the lower its marginal utility.

Therefore, as wealth increases, the propensity to reduce consumption in order to increase future wealth decreases. Ceteris paribus, the more savings a person has, the less his desire to save more (the higher the level of well-being, the higher consumer spending).

Consumer expectations

Expectations about the movement of price levels and production volumes can also have a certain impact on the formation of consumption. Thus, expectations of price increases can stimulate current consumption, and vice versa.

Consumer taxes

Taxes are paid partly from consumption and partly from savings. Therefore, an increase in taxes will move the consumption curve down. On the contrary, the share of income received from tax cuts will be partially consumed. Thus, tax cuts will shift the consumption curve upwards.

Consumer transfers

An increase in transfers means an increase in personal disposable income and, consequently, an increase in consumer spending.

Consumer debt

It can be expected that the level of consumer debt will make households want to spend their current income either on consumption or on savings. If household debt has reached such a level that, say, 20% or 25% of their current income is set aside to pay the next installments on previous purchases, then consumers will be forced to reduce current consumption in order to reduce debt.

Consumer loan interest rate

The sample was formed according to the territorial-sectoral principle. The disadvantage is that it does not represent the population with the highest incomes.

The main source of information on the volume and structure of household expenditures. The disadvantage is that the balance is built on other conceptual principles than the SNA (for example, household savings take into account only the increase in savings in and ).

Trade Statistics

Provides volume and structure data retail trade. In addition, adjustments are made for unreported and unorganized trade. The data are corrected, since some of the recorded goods are not an element of final, but intermediate consumption (seeds, feed, building materials, etc.).

From the standpoint of the standard of living of the population, the priorities are the areas of analysis in terms of the costs of meeting the priority needs of the population, which include food, clothing, footwear, and housing.

Family budget expenditures on food are a social indicator of the financial situation of the population, because the formation of the structure of the rest of the family budget, including those items that characterize a higher standard of living, largely depends on their size.

Analysis of the structure of consumer spending is not limited to average indicators. One of the important tasks of the study is to establish differences in the level and structure of consumption in households (families) with high and low average per capita incomes, and especially in the extreme in terms of material well-being groups of the population (households).

For this purpose, the data obtained on the basis of a survey of household budgets are ranked on the basis of average per capita (monetary, total) income, the corresponding amounts of consumer spending and the features of their structure are established.

Inequality in consumption is assessed similarly to the assessment of inequality in income distribution. Most often, differences in the consumption of the lower and upper decile groups are considered, i.e. 10% of the surveyed population with minimum and maximum incomes.

Key macroeconomic indicators of consumer spending

Consumer spending is presented in several macroeconomic indicators. Consumer spending index (CPI) based on volume data retail, important for foreign exchange market, as it shows the strength of consumer demand and consumer confidence, which are inputs to other economic indicators such as GNP and .

Consumer Personal Spending Index

A comprehensive measure of how much consumers spend each month, including spending on durable goods, consumer goods and services. Personal consumption is a comprehensive measurement of GDP and hence the indicator monitors economic trends. consumer's personal consumption spending has a direct impact on inflationary pressures.

US personal consumption spending

A healthy indicator of personal consumption spending means that consumers are buying goods and services that fuel the economy and stimulate production growth. The report is especially valued for inflationary pressures. Taken in , these high levels of US consumption and production could lead to an overall increase in prices. In fact, it uses the inflation figures published in the PCE report as the main inflation gauge.

On the other hand, persistently low personal consumption spending can lead to lower production levels and an economic downturn.

Because income is either spent or saved, personal spending (published as a percentage of income, not percentage change) is inversely related to personal saving. Economists look at the rise in personal consumption spending associated with income and savings to determine whether consumers are living beyond their means, which could affect borrowing levels and future consumption.

Growth in personal consumption spending

Consumer personal spending, USA

The Personal Consumer Expenditure Index (PCE) is released as a percentage change from the previous month.

Chart of personal consumption spending in the United States for the year

Consumer Net Personal Expenditures (Core CPE).

Volatile items such as food and beverages can fluctuate greatly due to seasonal and non-systemic factors. In order to provide a more robust picture of personal consumption, food and energy, these items are excluded from the Core PCE report.

The PCE heading metric expresses the percentage change in quarterly spending.

Note: Personal Consumption Expenditure publishes income and spending figures.

Indicator importance: Moderately affects the market

Chart of personal consumption spending in the United States for 10 years

The Fed's long-term target is at 2% y/y, and strong variances are cause for some concern. On average, PCE inflation is typically 0.3% below the Consumer Price Index (CPI), which is related to the calculation.

Core consumer spending index, USA

Eurozone Household Consumption Reports, average spending on individual consumer goods and services per household per year. The indicator is reported as an annual percentage change.

Chart of personal consumption expenditures in the Eurozone for 5 years

An increase in household consumption indicates an increase and a higher level of consumer optimism as a positive indicator of the economy. However, runaway growth could lead to inflationary pressures. Therefore, this report can be used as a leading indicator for inflationary pressures.

Indicator importance: Rarely affects the market

Chart of personal consumption expenditures in the Eurozone for the year

Consumer Personal Spending Index, China

The indicator of the index of personal consumption expenditures in for various .

Chart of personal consumption spending in China over 60 years

Chart of personal consumption spending in China over 10 years

Personal consumer spending, Japan

5 year chart of personal consumption expenditures in Japan

Personal spending index, Germany

Chart of personal consumption expenditures in Germany over 20 years

Chart of personal consumption expenditures in Germany for 10 years

Chart of personal consumption expenditures in Germany for 5 years

Consumer Personal Spending Index, UK

A measure of the index of personal consumption expenditures for various periods.

Chart of personal consumption spending in the UK over 10 years

Chart of personal consumption spending in the UK over 5 years

Chart of personal consumption spending in the UK for the year

Index of personal consumption expenditures, France

The indicator reflects the monthly change in the volume of consumer spending on goods and services during . Increasing values have a positive effect on the quotes of the single European currency, since consumer spending is approximately two-thirds of GDP.

However, the effect of the indicator is limited to the market, since French GDP this is only about 25% of the GDP of the entire Eurozone.

Chart of personal consumption expenditures in France for 5 years

Chart of personal consumption expenditures in France for the year

Consumer personal spending, Brazil

A measure of the personal spending index for various periods.

Graph of personal consumption expenditures in Brazil over 5 years

Personal spending index, Italy

A measure of the personal spending index for various periods.

Chart of personal consumption expenditures in Italy for 5 years

Personal Consumer Expenditure Index, India

A measure of the personal spending index for various periods.

Chart of personal consumption spending in India for the year

Personal consumption spending, Russia

For the period 1990-2013. consumer spending increased by 1101.6 .dollars. or 3.8 times to 1499 billion dollars; the change occurred by -14.4 billion dollars. by reducing the population of the Russian Federation by 5.4 million people, as well as by 1116 billion dollars. by increasing consumer spending per capita in Russia by $7812.3.

Table of consumer spending in the Russian Federation from 1999 to 2013

The average annual increase in consumer spending in Russia amounted to 47.9 billion dollars. or 12.1%. The share in the world increased by 0.3%. The share in increased by 2.9%. The share in Eastern Europe decreased by 5.4%. Russia's lowest consumer spending was in 1999 ($133.9 billion). The maximum consumer spending in Russia was in 2013 (1499 billion dollars).

During 1990-2013. per capita consumer spending in the Russian Federation increased by $7812.3 or 3.9 times to $10494.6. The average annual increase in consumer spending per capita in the Russian Federation was $339.7, or 12.7%.

Consumer spending in Russia, 1990-1999, recession

For the period 1990-1999. consumer spending of the Russian Federation decreased by 263.5 billion dollars. or by 66.3% to $133.9 billion; the change occurred at -2.3 billion dollars. due to a decrease in the population of Russia by 0.9 million people, as well as by -261.2 billion dollars. by reducing consumer spending per capita in Russia by $1773.5. The average annual increase in consumer spending in the Russian Federation amounted to -29.3 billion dollars. or -7.4%. The share in the world decreased by 1.8%. The share in Europe decreased by 4.4%. The share in Eastern Europe decreased by 32.2%.

Structure of consumer spending in the Russian Federation

During 1990-1999. consumer spending per capita in the Russian Federation fell by $1,773.5, or 66.1%, to $908.8. The average annual increase in consumer spending per capita in the Russian Federation was -197.1 USD or -7.3%.

Consumer spending in Russia, 1999-2013, upswing

During 1999-2013. Russia's consumer spending increased by 1365.1 billion dollars. or 11.2 times to 1499 billion dollars; the change occurred by -4.1 billion dollars. due to a decrease in the population of the Russian Federation by 4.5 million people, as well as by 1369.2 billion dollars. by increasing consumer spending per capita in the Russian Federation by $9585.8.

Graph of the share of consumer spending in Russia's GDP

The average annual increase in consumer spending in Russia amounted to 97.5 billion dollars. or 72.8%. The share in the world increased by 2.1%. The share in Europe increased by 7.3%. The share in Eastern Europe increased by 26.8%.

During 1999-2013. per capita consumer spending in Russia increased by $9585.8 or 11.5 times to $10494.6. The average annual increase in consumer spending per capita in Russia amounted to $684.7 or 75.3%.

According to the classical concept, the level of total expenditure, determined by total income, is always sufficient to purchase products produced at full employment. The Keynesian approach, casting doubt on this statement, proceeds from the fact that the volume of demand of individual economic entities is formed under the influence of various incentive motives, including psychological factors. Since the time of Keynes, the concepts of “inclination”, “expectations”, “preference”, etc. have entered the toolkit of economic science. These concepts already in the form of specific economic indicators make it possible not only to take into account psychological factors, but also to measure their influence in the analysis of macroeconomic equilibrium.

Figure 4. Factors affecting consumption and savings

1. The level of current income. The total volume of consumption, as a rule, depends on the total amount of income. The role of the psychological factor influencing consumption is described by J. M. Keynes as follows: people tend, as a rule, to increase their consumption with income growth, but not to the same extent as income grows. (JM Keynes, “The General Theory of Employment, Interest and Money”). The ratio between consumption and the change in income it causes is called the marginal propensity to consume.

5. Taxes. Taxes are paid partly from consumption and partly from savings. And the share of income received from tax cuts will be partially consumed.

6. Transfers. An increase in transfers means an increase in personal disposable income and, consequently, an increase in consumer spending.

9. Price level. Changes in the price level change the real value, or purchasing power, of certain types of wealth. More precisely, the real value of financial assets, the nominal value of which is expressed in money, will be inversely proportional to changes in the price level. This effect is called the wealth effect.

Savings is income not spent on the purchase of goods and services within current consumption. They are carried out by both households and firms. The amount of savings is inversely proportional to the amount of consumption. The sources of savings are an increase in production (and income) or a reduction in consumption. The process of saving is called the term “saving”, and their amount on a national scale is called “gross saving”.

1. The level of current income. In the short term, as current disposable income rises, APC decreases and APS increases, i.e., as family income rises, the share of spending on consumption decreases relatively and the share of savings increases relatively. However, in the long run, the average propensity to consume stabilizes, since the amount of consumer spending (and, consequently, the amount of savings) is influenced not only by the size of the current disposable family income, but also by the size of the total living income, as well as the amount of expected and permanent income.

3. The level of well-being (wealth). Generally speaking, the greater the accumulated wealth, the greater the amount of consumption and the less the amount of saving at any level of current income.

4. Expectations. Expectations of rising (falling) prices and scarcity of goods (feeling that goods will be plentiful) lead to a decrease (increase) in savings.

5. Taxes. Taxes are paid partly from consumption and partly from savings, so an increase in taxes would move the savings curve down, and, conversely, the share of income received from tax cuts would go partly to household savings.

6. Transfers.

7. Consumer debt. If consumer indebtedness is relatively low, household savings may rise unusually, leading to higher indebtedness.

9. Price level.

10. Number of consumers and structural factors.

It is traditionally accepted that an increase in savings has a favorable effect on the economic situation of both individual citizens and the country as a whole. Keynes drew attention to the fact that, under certain conditions, an increase in savings can lead to undesirable consequences for the economy.

If the economy is underemployed, an increase in the propensity to save naturally means nothing more than a decrease in the propensity to consume. Reduced consumer demand means it is impossible for producers of goods to sell their products. Overstocked warehouses can in no way encourage new investment. Production will begin to decline, mass layoffs will follow, and, consequently, a fall in national income (total income earned by the owners of economic resources) as a whole and in the incomes of various social groups. This is what will be the inevitable result of saving more. The virtue of saving turns into its opposite - the nation becomes not richer, but poorer.

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The concept of consumer spending, government consumer spending

Volume of consumer spending, personal consumption spending, consumer spending of the population, structure of consumer spending, growth in consumer spending

Consumer spending is the cost of buying goods and paying for services.

consumer spending is total spending on goods and services. They make up 75 - 80% of total income.

It is part of the national good; general expenses households for consumer services and products durable and non-durable, domestically produced and imported from abroad. on consumption consist of autonomous consumption and induced consumption.

The essence of consumer spending

consumer spending cover all current expenses on the products and services, regardless of whether they were fully or partially paid for during the survey period and whether they were intended for intra-household consumption. Consumer spending consists of spending on food (including spending on eating out), alcoholic beverages, non-food items, and spending on payment services.

Changes in aggregate demand. Determinants of aggregate demand. factors that shift the aggregate demand curve. Changes in consumer spending may be driven by consumer expectations about future prospects. When people expect an increase in the future of their real benefits, they are ready to spend a significant part of their current gain. Current consumer spending then rises (current saving falls) and the aggregate demand curve shifts to the right. However, the expectation of a decrease in the future real income leads to a reduction in current consumer spending, and consequently, to a fall in aggregate demand.

Consumer spending patterns differ not only among individuals, but also across countries. One striking feature is that although the wealthy countries Households spend more on food in absolute terms than in the poorest countries, but in these latter countries food is a much larger share of household budgets.

Reducing consumer spending and increasing the efficiency of the functioning of trade and intermediary enterprises can be the result of various, but, of course, optimization transformations in the company and the technology of product distribution processes. At the same time, the success of such transformations increases if their nature is consistent with the nature of those objectively expedient, progressive economic processes which form the basis of social development. Among these processes one of the most characteristic is integration. The historical economic development of society has been invariably accompanied and continues to be accompanied by the development and gradual strengthening of integration trends. Isn't the best evidence is the implementation of the ideas of the French Emperor Napoleon I about common European institutions and currency, which is taking place before our eyes.

The structure of the volume of sales of products by the final consumers within the product distribution segment in 1997. Reducing consumer spending and improving the efficiency of the functioning of trade and intermediary enterprises may be the result of various, but, of course, optimization transformations in firms and technologies of goods distribution processes. Wherein probability The success of such transformations increases if their nature is consistent with the nature of those objectively expedient, progressive economic processes that form the basis of social development. Among these processes, one of the most characteristic is integration.

The structure of consumer spending differs sharply in families with different levels of per capita income. For poor families, the purchase of goods is mainly concentrated on food, and mainly on cheap products. In high-affluence families, by contrast, a large share of spending goes on expensive durables, personal vehicles, housing, and a variety of services.

Impact of non-price factors on the aggregate demand curve. The decrease in consumer spending is due to a decrease in real benefits, which lowers the total and shifts its curve to the left. Factors that reduce real wealth and aggregate demand are a decrease in consumer welfare, for example, due to falling real estate prices, pessimistic about future real incomes, an increase in debt on consumer loans, since part of the profit will be spent on debt repayment, increasing income tax rates.

Consumer spending (CPI) based on data on the volume of retail trade is important for foreign exchange Forex market, as it shows the strength of consumer demand and confidence consumers, which are the original data when calculating other economic indicators such as GNP and GDP.

Consumption - consumer spending of the population, i.e. the amount of money consumers are willing to spend. Naturally, the ability to spend depends on the level of income and the propensity of the population to save. Incomes and expenditures of consumers do not always coincide: at low benefits there is a consumption of capital accumulated for the previous one, at high benefits there is an opportunity for savings.

In the structure of consumer spending, 45 - 52% is for the purchase of food products, 33 - 40% - for non-food products and 18 - 22% - for payment services. Recalculation into US dollars was carried out on a quarterly basis, at the unweighted rate of the Moscow Exchange.

Consumption schedule (a and threshold line (b.

Many factors influence the level of consumer spending, but the most important factor is after-tax profit.

In the structure of consumer spending, 45 - 52% is for the purchase of food, 33 - 40% - for non-food products and 18 - 22% - for services. Conversion to United States dollars carried out quarterly USA unweighted rate of the Moscow Exchange.

Consumption and RD, 1970 - 1994 Many factors influence the level of consumer spending. But the most important of them is profit, especially RD. And since savings is the unconsumed part of RCs, the latter is also the main determinant of personal savings.

As part of the consumer spending of the population, the share of expenditures on services is increasing, and especially rapidly - on high-class services.

In the structure of consumer expenditures of the population, their main share, as before the reform, falls on the purchase of essential goods, especially food.

Meanwhile, only consumer spending is an element of aggregate demand. That is why it turns out that with a mutually compensating increase in government spending, on the one hand, and taxes- on the other hand, total demand, and consequently, the total profit increases (initially by 50 units), and does not remain at the same level.

What is the structure of household consumer spending.

C - the size of consumer spending, Y - the amount of benefit for the corresponding. Used in Keynesian economics.

Significant slowdown in consumer spending leads to higher inventories finished products, which affects the decrease in sales and profits, and this, in turn, responds to the production of consumer goods and, finally, with a great delay - to the producers of raw materials and materials.

Changes in the nature of consumer spending depend on the forecasts that consumers make. For example, when people believe that their real profit will increase in the future, they are ready to spend most of their current profit. Consequently, at this time, consumer spending increases (saving decreases at this time) and the aggregate demand curve shifts to the right.

In turn, consumer spending breaks down into their autonomous part - Ca and the part directly dependent on the value of the total profit - Su; Cy YxMPC, where MPC is the marginal propensity to consume, equal to the share of an additional unit of household benefit allocated to current expenditures.

What factors affect household consumption spending.

The consumption curve characterizes the ratio of consumer spending to benefits in their movement. The savings curve shows the ratio of savings to gain in their movement.

More than half of total consumer spending is accounted for by services.

In per capita consumption, statistics track consumer spending and its structure. The expenses include everything for maintaining the standard of living (except for the costs of paying taxes and other obligatory payments); their value depends both on income and on the state of the consumer market, which creates opportunities for the realization of the income of the population.

During periods when consumer spending exceeds current disposable income. Such a situation is possible either as a result of spending part of the existing stock of savings, or attracting borrowed funds.

What we have called household consumption expenditure is defined in the national gain accounting system as personal consumption expenditure.

From Keynes's point of view, consumer spending by individuals is closely related to their benefits and does not experience sharp fluctuations. Another thing - they represent the most fickle, capricious part of aggregate demand. The fact is that organizations invest in expanding production only if they expect to gain from it. This, in turn, happens when companies expect an increase in demand for their products that will pay off costs and bring profits. Thus, a lot depends here on profit expectations. And they are under the influence of pessimism during the recession, partly justified, and partly exaggerated.

The main component of aggregate demand is household consumer spending, which includes all spending in this sector, from food and utility bills to car purchases.

The influence of this factor on the value of consumer spending at a given level of profit, however, is rather doubtful. In the classical theory of interest, which was based on the idea that the rate percent serves as a balancing act between savings and demand on them, it was convenient to assume that consumption expenditures, other things being equal, show an inverse relationship with the norm percent so that any increase in the rate of interest will entail a substantial reduction in consumption. However, it has long been recognized that the effect ultimately exerted by a change in the rate of interest on the willingness with which people spend one or another part of their benefit on current consumption is complex and uncertain: such changes set in motion conflicting tendencies, since some of the subjective incentives to save become stronger as the rate of interest rises, while other motives weaken. Over long periods of time, significant changes in the rate of interest are likely to significantly change social habits and thus affect the subjective propensity to spend, although it is difficult to predict in advance in which direction such an effect will take place. This can only be clarified in the light of accumulated experience. Ordinary short-term fluctuations in the rate of interest are unlikely to have any strong direct influence on the magnitude of costs.

The influence of this factor on the value of consumer spending at a given level of profit, however, is rather doubtful.

The following diagram shows the structure of consumer spending for a core middle-class family of 3 to 4 people.

As a result, savings are rising, and consumer spending and investments decrease. Any holder financial resource with the same nominal at the price(for example, a term deposit in a bank) receives a real and, moreover, risk-free profit. Investment in a declining economy and large consumer spending, on the contrary, are associated with increased risk.

The purchase of goods and payment for services - consumer spending, which is the main one, accounts for three-quarters of all monetary costs. Their value is due to: the volume of cash income, which today is not large enough; satisfaction of necessary personal and family needs; retail prices; climatic and geographical conditions of life and other factors.

Depending on the socio-economic category of households, consumer spending changes dramatically. The 10% group of households with the least resources in 1998 spent 1882 rubles per member per month, of which 706% was spent on food and only 134% on non-food items.

The formula shows that an increase in consumer spending, investment, government spending and exports leads to an increase in GNP. An increase in investment and government spending has a multiplier effect on this growth.

The high level of consumer debt stimulates the growth of consumer spending and aggregate consumption.

The mirror relationship between the functions of savings and consumer spending is also manifested in the fact that the marginal propensity to save is equal to one minus the marginal propensity to consume. Such a dependence is determined by the fact that only that which is not saved can be consumed, and only that which is not consumed can be saved.

Reflects the change in the market value of the bulk of consumer spending, due to rising prices for goods and tariffs for services.

Reflects the change in the market value of the main part of consumer spending, due to changes in prices for goods and tariffs for services.

According to this theory, the total amount of post-tax consumer spending (Ca), gross investment (/s), net exporting(X) and government spending (G) determines the total cost of goods and services sold.

Expenses are divided into:

a) consumer spending;

b) other obligatory payments and voluntary contributions;

c) money savings and savings.

Personal consumer spending is part of the national good; total household spending on consumer services and durable and non-durable goods produced domestically and imported from abroad. Personal expenses on consumption consist of autonomous consumption and induced consumption.

Consumer Spending is

Sources

dic.academic.ru - Dictionaries and encyclopedias on Academician

ai08.org - Big technical encyclopedia

glossary.ru - Glossary

Encyclopedia of the investor. 2013 .

Consumer spending (Consumer Spending) is. Consumer spending and factors that determine them Consumer spending in the national economy: concept and influencing factors

a macroeconomic indicator that shows the amount of household expenditures on personal consumption of non-durable and durable goods and services and is the main gross national product and a component of aggregate demand

Consumer spending is, definition

The Impact of Consumer Spending on Markets

Impact of consumer spending on the stock market

The dependence of the bond market on consumer spending

The impact of consumer spending on the foreign exchange market

Unjustified consumer spending

Classification of consumer spending by level of income

Consumer spending indicators

Level of consumer spending

Structure of consumer spending

Consumer spending on alcoholic beverages

Consumer spending on non-food items

Consumer spending on personal services

Factors affecting consumer spending

The amount of consumer income

Efforts to sell goods

Consumer Welfare Level

Consumer expectations

Consumer taxes

Consumer transfers

Consumer debt

Consumer loan interest rate

Trade Statistics

Key macroeconomic indicators of consumer spending

Consumer Personal Spending Index

Consumer personal spending, USA

Core consumer spending index, USA

Consumer Personal Spending Index, China

Personal consumer spending, Japan

Personal spending index, Germany

Consumer Personal Spending Index, UK

Index of personal consumption expenditures, France

Consumer personal spending, Brazil

Personal spending index, Italy

Personal Consumer Expenditure Index, India

Personal consumption spending, Russia

Consumer spending in Russia, 1990-1999, recession

Consumer spending in Russia, 1999-2013, upswing

The concept of consumer spending, government consumer spending

Volume of consumer spending, personal consumption spending, consumer spending of the population, structure of consumer spending, growth in consumer spending

Consumer spending is the cost of buying goods and paying for services.

The essence of consumer spending

Sources

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