Consumer potential of households, its differentiation and dynamics in the new economy: evidence from Russia

DOI

10.2991/sicni-18.2019.107How to use a DOI?

Keywords

households; consumer potential; socio-economic differentiation; human potential; new economy; consumer behavior; propensity to consume

Abstract

Household is a production unit of a special kind, producing basic consumer goods directly included in its utility function. The production function of the household and full satisfaction of needs determines the formation of human potential. Due to under-consumption, the quality of human potential suffers. Most of the household consumption is a productive consumption aimed at the reproduction and accumulation of the household’s human potential. Consumer activity in the new economy complement the concept of "human potential" through the realization of consumer potential, which is reproduced in the form of consumer capital. Consumer potential of the household determined primarily by income. In the case of Russian transitional economy, the polarization of consumption characteristics is only an external manifestation of the socio-economic processes took place at the previous stages of economic development. Consumer behavior of the population of Russia shows a very high marginal propensity to consume that generally fluctuates between 0.7 and 0.9 over the years. The consumption function of Russian households in 2001-2015 shows that the relationship between income and consumer spending is clear. A low level of real incomes forces people to direct the income growth mainly to consumer spending. During periods of stabilization of the economic situation in Russia, the marginal propensity to consume decreases.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Galina Rossinskaya
AU  - Zulfiya Ibragimova
AU  - Nail Ishmukhametov
PY  - 2019/01
DA  - 2019/01
TI  - Consumer potential of households, its differentiation and dynamics in the new economy: evidence from Russia
BT  - Proceedings of the 2nd International Scientific conference on New Industrialization: Global, national, regional dimension (SICNI 2018)
PB  - Atlantis Press
SP  - 531
EP  - 535
SN  - 2352-5398
UR  - https://doi.org/10.2991/sicni-18.2019.107
DO  - 10.2991/sicni-18.2019.107
ID  - Rossinskaya2019/01
ER  -