Economics and Consumer Behavior

This essential text, Economics and Consumer Behavior, explores duality in consumer behavior economics, providing valuable insights into welfare economics and econometric applications.

The concept of duality serves as a vital tool in contemporary studies of consumer behavior economics. In Economics and Consumer Behavior, the authors, 2015 Nobel Laureate Angus Deaton and John Muellbauer, present a comprehensive and user-friendly exploration of this topic. The book emphasizes the practical applications of duality theory, particularly in the realms of welfare economics and econometric analysis. This foundational text has educated countless students on the economic principles governing consumer behavior.

Beginning with a clear and self-contained introduction to the basic theories, Economics and Consumer Behavior also delves into applied econometrics. The initial chapters cover essential extensions of the theory, including labor supply, durable goods, consumption functions, and rationing. Following this introduction, the book is structured into three distinct parts that explore various aspects of consumer choice and behavior.

The first section addresses the constraints on choice and the complexities of aggregation. The second part includes discussions on consumer index numbers, household characteristics, demand, and social welfare comparisons. Finally, the last section broadens the understanding of consumer behavior by incorporating aspects such as the quality of goods, household production theory, labor supply, human capital theory, and intertemporal choice. Throughout, the book illustrates the relevance of duality theory in welfare economics and econometric analysis, making it an essential resource for students and practitioners alike.