# Propensity to spending of an average consumer over a brief period

**Authors:** Roberto De Luca, Marco Di Mauro, Angelo Falzarano, Adele Naddeo

arXiv: 1705.03848 · 2017-05-11

## TL;DR

This paper introduces a simple model to analyze how an average consumer's spending behavior evolves over a short period, considering factors like budget, prices, and demographic influences, with potential applications in understanding economic crises.

## Contribution

It proposes a novel, quantitative model of consumer spending dynamics and explores a hydrodynamical analogy to better understand consumption behavior during economic fluctuations.

## Key findings

- Model captures short-term spending variations
- Hydrodynamical analogy offers new insights
- Framework adaptable to economic crisis analysis

## Abstract

Understanding consumption dynamics and its impact on the whole economy and welfare within the present economic crisis is not an easy task. Indeed the level of consumer demand for different goods varies with the prices, consumer incomes and demographic factors. Furthermore crisis may trigger different behaviors which result in distortions and amplification effects. In the present work we propose a simple model to quantitatively describe the time evolution over a brief period of the amount of money an average consumer decides to spend, depending on his/her available budget. A simple hydrodynamical analog of the model is discussed. Finally, perspectives of this work are briefly outlined.

## Full text

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## Figures

10 figures with captions in the complete paper: https://tomesphere.com/paper/1705.03848/full.md

## References

18 references — full list in the complete paper: https://tomesphere.com/paper/1705.03848/full.md

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Source: https://tomesphere.com/paper/1705.03848