Consumption Takes Time
Implications for Economic Theory
1st Edition
Published on 29. March 2001
Book
Hardback
176 pages
978-0-415-25099-3 (ISBN)
Description
Standard economic theory of consumer behaviour considers consumers' preferences, their incomes and commodity prices to be the determinants of consumption. However, consumption takes time and no consumer has more - or less - than 168 hours per week. This simple fact is almost invisible in standard theory, and takes the centre stage in this book. Whether one is 'money-rich but time-poor' or is 'money-poor and killing time', both money and time considerations matter.
Recognition that consumers are subject to both time and expenditure constraints makes a real difference to the economic theory of consumption. 'Two-constraint' theory is genuinely different in various respects from the familiar one-constraint theory. Income effects, substitution effects etc. have to be reconsidered, expenditure functions have to be redefined, and the results are sometimes surprising. It is not only the positive theory of consumption and labour supply that must be reworked, welfare economics too changes significantly when time constraints on consumption are given their proper due. The focus on time not only changes the comparative states of consumer theory, but it also overcomes some of the more artificial barriers between social theory and practical, everyday matters of altruism and interpersonal decision taking.
Recognition that consumers are subject to both time and expenditure constraints makes a real difference to the economic theory of consumption. 'Two-constraint' theory is genuinely different in various respects from the familiar one-constraint theory. Income effects, substitution effects etc. have to be reconsidered, expenditure functions have to be redefined, and the results are sometimes surprising. It is not only the positive theory of consumption and labour supply that must be reworked, welfare economics too changes significantly when time constraints on consumption are given their proper due. The focus on time not only changes the comparative states of consumer theory, but it also overcomes some of the more artificial barriers between social theory and practical, everyday matters of altruism and interpersonal decision taking.
Reviews / Votes
'These lectures... are written in a lively, entertaining style.' - EconomicaMore details
Series
Language
English
Place of publication
London
United Kingdom
Publishing group
Taylor & Francis Ltd
Target group
College/higher education
Dimensions
Height: 240 mm
Width: 161 mm
Thickness: 14 mm
Weight
440 gr
ISBN-13
978-0-415-25099-3 (9780415250993)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Additional editions
Book
08/2006
1st Edition
Routledge
€70.90
Shipment within 15-20 days
E-Book
03/2001
Routledge
€64.49
Available for download
E-Book
03/2001
Routledge
€64.49
Available for download
Person
Ian Steedman (Manchester Metropolitan University, UK)
Content
1. Consumption takes time Textbook consumption theory Brief references to some literature Time as a context Two commodity case Three commodity case Non-linear time constraint Rates of consumption Satiation and general equilibrium Work, consumption and 'leisure' times Concluding remarks 2. Zuruck Zu Gossen Gossen on the uses of time Selected responses to Gossen's gem Georgescu-Roegen on Gossen Forgetting the forefather? Comparative statics Comparative statics of alternative preferences Many time-uses Concluding remarks 3. Further explanatory analysis The basic case and its simplification Further discussion Preference loops on the time-constraint plane The expenditure function A specific expenditure function Comparative statics of time-use Cobb-Douglas preference loops From time use to commodity use Other forms of the C matrix Demand relations in commodity space Rates of consumption (and characterization of choices) Availability without consumption Non-linearities and non-convex consumption sets Intertemporal consumption theory Work and leisure Concluding remarks 4. Welfare economics The basic case Rates of consumption Availability Pure leisure time Pareto efficiency and competitive equilibria Three commodities Liberal welfare economics Capabilities Concluding remarks 5. Activities rather than wants A generalization Risk and uncertainty Space, location and travel Intrinsically-valued and result-valued activities Doing two things at once Repetition and Gossen's second law Practicing Set-up-times Sleep Endogenous T Voluntary work and charitable donations Shared activity Time-use surveys Some broader considerations 'Time, that most valuable health' (Alfred Marshall, 1873) Decision-making Satiable preferences Wider still