Consumer Behavior, Consumption Function, And Fiscal And Monetary Policy

Rational Economic man" has been respected as a gr it and natural hypothesis to most economists. But this dissertation disagrees with the hypothe hrough comprehensive overview and systematical inspect, and tries to put forward the hypothsis of "defective economic man" to substitute for it. "Defective economic man" is defined as fuzzy-headed rational man and he pursue for benefit not only economic benefit but also non-economic benefit. Then he purchases not only goods in physical form but also goods in non-physical form such as national defence through tax payment.This dissertation also puts forward the conception of hierachical utility and thinks that the satisfaction for different levels of demands on hierachical goods products hierachical utility. Different levels of umlity can't be compared directly.On the basis of above analysis, we submit new consumption function. The function expresses as follows:And Ct should be distributed as follows:Inside, 1 represent for the proportion between the part income in last period expected for consumption in this period and the whole income in last period. ^ represent for the proportionbetween the part expecting income lext period expected for consumption in this period and the whole expecting income in next period.Then this dissertation analyses the current economic situation of China and obtian the primary conclusion that institutional factors inflect consumpers' expection. That is the key to consumption deficiency of China today.