|
John Maynard Keynes, in 1936, proposed the psychological law in his work: ''The General Theory of Employment, Interest and Money''. The law basically captures and understands the essential spending behavior of the household sector. Keynes uses the term 'psychology' in his law but the law is just a basic observation of consumer behavior and consumption. It states the relationship between income and consumption pattern, such as the changes in the aggregate income of the economy and the expenditures on consumption by the household sector.〔(【引用サイトリンク】title=AmosWEB is Economics: Encyclonomic WEB *pedia )〕 The law is thus, a macro framework of the operation of the economy as it applies more to the aggregate economy than to the individuals. Therefore, in Keynesian macroeconomics, the fundamental psychological law underlying the consumption function states that marginal propensity to consume (MPC) and marginal propensity to save (MPS) are greater than zero (0) but less than one (1): MPC + MPS = 1; e.g., whenever national income rises by $1 part of this will be consumed and part of this will be saved ==Assumptions== Three main assumptions of the Psychological Law are: 1. Normal conditions: Firstly, the psychological law applies only under normal conditions and when there is no danger of war or cold war, depression, boom, political upheaval, revolution etc. In other words, it is time invariant 2. Psychological and Institutional Complex remains the same: It means that there is no change in the psychological and institutional complex, such as population, tastes and preferences, habits of the people, fashion, prices etc. except change in income. 3. Capitalist economy based on laissez-faire: The psychological law applies to free and prosperous economies and does not hold well in socialist and under-developed economies. This is because, in a free economy, the people can consume any kind of goods they want, according to their necessities and desires and also there is no interference of the government in the economic affairs. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「fundamental psychological law」の詳細全文を読む スポンサード リンク
|