By H. Tamura
This ebook accommodates human psychology into financial research. It constructs a brand new easy constitution version of financial stream, analyzes the direct dating among human psychology and fiscal fluctuation, and offers a framework within which output and the allocation of assets are at the same time decided.
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Extra info for Human Psychology and Economic Fluctuation: A New Basic Theory of Human Economics
J '~'-~! 3 An example ofartificially-imposed attrition In other words, by replacing a flat utility function with an approximation that takes the form of a linear utility attrition function, it is possible to analyze the "exceptions" covered by Example (iii) as if they were "standard" goods or seIVices for which the level of utility experienced by the consumer diminishes over time. 3. The Relationship Between Diminishing Utility and Human Desire In this section we use the concept of a utility attrition ftmction to examine the relationship between utility attrition (diminishing utility) and human desire.
The Income-Expenditure Balance for an Economy Including a Government Sector We conclude this section by incorporating the third major entity in modem economic society-the government sector-into our model of a monetary economy. Here we assume that the government sector provides public goods and services, formulates economic stimulus measures and other policy objectives, and determines the level of government spending over a given period of time based on the total amount of income tax and corporate tax that it is able to collect from the household sector and corporate sector (respectively).
In summary, a monetary economy differs from our previous example of a non-monetary economy in that households (paid workers) and firms (owners of the means of production, or capital stock) are distinct entities, with activity in a monetary economy centering around flows of labor, consumption goods, and money between households and finns. 2. The Income-Expenditure Balance for Households and Firms Where Households Own the Stock of Consumption Goods We can now begin the process of extending our "human accounting framework" to a monetary economy with a separate household and ftrm.
Human Psychology and Economic Fluctuation: A New Basic Theory of Human Economics by H. Tamura