Collective Consumption Class Notes

University:
Stanford University
Course:
ECON 1 | Principles of Economics
Academic year:

2024
Views:

463

Pages:

2
Author:

larbi43100

Collective consumption the good or service is consumed by several individuals without the possibility of exclusivity, allowing them to satisfy the same good. Collective consumption has certain characteristics; it concerns non-market services which are produced by public administrations and consumed collectively. In this type of consumption we distinguish: ⮚ Individualizable collective services where consumers of these services can be identified (public transport, etc.) ⮚ Non-individualizable collective services which affect the whole of society, without the possibility of identifying consumers (national defense provided by the army, etc.). The consumption of non-market services is called collective consumption because it is the entire community which participates in financing their production, through the payment of taxes or social contributions. V-1-1 / Savings:Households have disposable income which they devote largely to consumption expenditure. However, part of this income is not spent immediately by households who prefer to save it for future use. V-1-2-1 / Definitions:according to Christian Bialès13, savings is a flow of income produced over a given period by capital (set of assets at the head of which is the economic entity considered, capital comes from the Latin caput which means "head" ), and whose use is the accumulation of assets which contributes to the increase in capital held between the beginning and the end of the period. Savings can also be the part of household disposable income which is not devoted to present consumption but consumption deferred over time. At the microeconomic level, savings result from the decision of an agent to give up an immediate consumption, to carry it out in the future. This savings is remunerated by a