James Duesenberry

James Duesenberry Stemble ( born July 18, 1918 in West Virginia; † 5 October 2009) was an American economist.

Life

Duesenberry studied at the University of Michigan, where he completed his bachelor's degree in 1939 and his Masters in 1941 and 1948, his Ph. D. obtained. From 1941 to 1946 he conducted research at the Social Science Research Council. Since 1946 he has taught at Harvard University, from 1957 as a full professor. He retired in 1989.

Relative income hypothesis

The 1949 published by Duesenberry hypothesis of relative income implies that consumption does not depend solely on the presence of income, but rather on the relative position in the social income pyramid. The upper limit is determined by the highest past income (), which reflects the achievements of the past standard of living.

According to Duesenberry consumers adjust their consumption behavior, and the associated standard of living steadily on an achieved maximum income to. With decreasing income households do not respond with an immediate reduction in their consumption expenditure ( ratchet effect or Ratchet effect), as they have become accustomed to a certain standard of living ( habit -persistence ).

Formally, the hypothesis represented as follows:

Works

• Income - Consumption Relations and Their Implications. In: L. Metzler (eds.): Income, Employment and Public Policy. W. W. Norton, New York 1948, pp. 54-81
• Income, Saving and the Theory of Consumer Behavior. Harvard University Press, Cambridge, Massachusetts, 1949.
• Business Cycles and Economic Growth. McGraw- Hill, New York 1958.
• With T. Mayer and RZ Aliber: Money, Banking and the Economy. W. W. Norton, New York 1981