Government Involvement In Consumption Behaviour

In this article, we will follow the involvement that the government has, through its expenses, on the consumption behavior. The involvement that the government has in the consumption behavior is made through fees and taxes that are applied on income. Fees and taxes are applied to the different forms of income but in this article we will be focused only on the influence of them on wages. In order to analyze the involvement of government expenses on consumption behavior an utility model will be used.