Economics and Consumer Behavior

by Angus Deaton, John Muellbauer

This classic text has introduced generations of students to the economic theory of consumer behaviour. Written by 2015 Nobel Laureate Angus Deaton and John Muellbauer, the book begins with a self-contained presentation of the basic theory and its use in applied econometrics. These early chapters also include elementary extensions of the theory to labour supply, durable goods, the consumption function, and rationing. The rest of the book is divided into three parts. In the first of these the authors discuss restrictions on choice and aggregation problems. The next part consists of chapters on consumer index numbers; household characteristics, demand, and household welfare comparisons; and social welfare and inequality. The last part extends the coverage of consumer behaviour to include the quality of goods and household production theory, labour supply and human capital theory, the consumption function and intertemporal choice, the demand for durable goods, and choice under uncertainty.

Genres: Economics, Business, Psychology, Nonfiction

464 pages, Hardcover

First published January 1, 1980

About the author

Angus Stewart Deaton is a British and American economist. In 2015, he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of consumption, poverty, and welfare.

Reviews

[Nico]

Didn’t feel like I had good working knowledge of weak separability and two-stage budgeting. Chapter 5 was great to learn more. Overall though I found it hard to read. Had to keep going back to the list of notation (it’s 5 pages long!) at the back of the book.

[Samuel]

No longer cutting-edge, but still very clear and intelligent survey of the theory and measurement of consumption.