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 … influence of them on wages. In order to analyze the involvement of government expenses on consumption behavior an utility model …

textual analysis as the microeconomic foundations for Keynes’s Consumption Theory; the second goal is to demonstrate that it … is possible to ground a Keynesian-type aggregate Consumption function on the basis of (some of) the principles underlying …

pecuniary externalities. Absent institutional constraints like prices and budgets, the optimal consumption rule would have … annuitize, the growth rate of marginal utility will be the discount rate minus the interest rate, resulting in a consumption … profile that is too flat. Accidental bequests transfer wealth from the old to the young, steepening the consumption profile …