Understanding Consumption (Clarendon Lectures in Economics)

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9780198287599: Understanding Consumption (Clarendon Lectures in Economics)

This work provides an overview of the recent research on the saving and consumption patterns of households, a field in which substantial progress has been made over the last few decades. The attempts by economists to understand the saving and consumption patterns of households have generated some of the best science in economics. For more than 50 years, there has been serious empirical and theoretical activity, and the data and the theory have never been separated as has happened in many branches of economics. Research has drawn microeconomists interested in household behaviour, as well as macroeconomists, for whom the behaviour of aggregate consumption has always occupied a central role in explaining aggregate fluctuations. Econometricians have also made distinguished contributions, and there has been a steady flow of new methodologies by those working on saving and consumption, in time-series econometrics, as well as in the study of micro and panel data. A coherent account of these developments is presented here, emphasizing the interplay between the micro and the macro, between the studies of cross-section and panels, and those using the aggregate time series.

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About the Author:

Angus Deaton is at Princeton University.


"The objective of the book is to organize, evaluate, speculate, and inspire. On all counts, it succeeds magnificently, and undoubtedly will help speed the way toward the next landmark in this field."--Journal of Economic Literature

"A lucid and even entertaining introduction to modern research in consoumption...a valuable reference for anyone actively engaged in research in the area."--Southern Economic Journal

"The most impressive study on the economics of consumption to date....The superb structure of this book makes it an excellent text for an advanced course in economics of consumption and saving....The fascinating analysis and the exhaustive bibliography in this book make it a valuable source for all researchers, faculty, students, and anyone with special interest in the area of consumption and saving."--Journal of Consumer Affairs

"There has been a veritable explosion of econometric work on consumption in recent years...Deaton has been behind some of it and is on top of all of it. There is no better way to get up to date."--Alan S. Blinder, Princeton University

"The book does an impressive job of integrating the insights available from many sources, drawing on theory as well as econometric evidence, and micro as well as macro models. Understanding Consumption is lucid, intuitive, and eminently readable."--Marjorie Flavin, University of Virginia

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