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Some Considerations on the Productive Capacity of Consumption Expenditures

In: The Economics of Public Services

Author

Listed:
  • Leo H. Klaassen

    (University of Rotterdam)

  • Wietze Eizenga

    (University of Michigan)

Abstract

This paper deals with the relation between the level and the structure of consumption and their influence on the labour productivity of the consumer. Assuming such a relationship, an optimal savings ratio will exist, below which savings are to be preferred over consumption and above which a consumption increase will contribute more to a rise in income than to higher savings. Empirical evidence is presented in so far as it was available to the authors.

Suggested Citation

  • Leo H. Klaassen & Wietze Eizenga, 1977. "Some Considerations on the Productive Capacity of Consumption Expenditures," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 19, pages 435-446, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-02917-4_19
    DOI: 10.1007/978-1-349-02917-4_19
    as

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