[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/104144.html
   My bibliography  Save this paper

Modeling Consumption and Saving Decision Making Behavior of People in the Settings of Urban Eastern Ethiopian Communities : A Heterodox Economics Approach

Author

Listed:
  • Demiessie, Habtamu
Abstract
This study is aimed at modeling the essential behavioral and institutional aspects of the economic fabric of urban eastern Ethiopian communities with an emphasis on consumption/saving regime. Analysis made was based on interdisciplinary approach. The principles of a hypothetical research govern key aspects of inferences made. The study hypothesized that the essential construct of the consumption/saving regime is by product of shared value system in the communities of interest. In this regard, the shared value system is the result of a more or commonly shared environment (economic, socio-cultural, political, past governance, geographic and geo-political) by urban eastern Ethiopian communities in the past and present. The importance of shared value system is interpreted in shaping consumption/saving decision making behavior of people in its implications to making life uncertain/risky. The study found out that the constructs of prevailing consumption/saving regime is behavioral and institutional response mechanisms people/households/communities design to cope up the uncertain/risky nature of life in general and that of their economic life in particular. As prevailing uncertainties in life are not faced and/or felt equally by people/households/communities, generalization made on behavioral and institutional features of the consumption/saving regime is not linear across the board. In this regard, the potency of behavioral and institutional modeling made on consumption/saving regime is subjected to variations across individuals/communities of various entities: income/ occupational/ consumption groups; generations; locations (urban versus rural); socio demographic variables, among others. The study further concludes that consumption/saving decision of individuals and/or the overall economic fabric in the settings of eastern Ethiopian communities is a complex phenomenon which is not only motivated by economic factors, but triggered by a host of non economic determinants attributed to psychological,psychosocial, sociological, anthropological and geographical variables. Therefore, academic and policy interventions meant to study/influence the consumption/saving regime in the case of urban eastern Ethiopian communities requires considering the mentioned economic and non economic variables with an interdisciplinary/multi sectoral tools/approaches.

Suggested Citation

  • Demiessie, Habtamu, 2020. "Modeling Consumption and Saving Decision Making Behavior of People in the Settings of Urban Eastern Ethiopian Communities : A Heterodox Economics Approach," MPRA Paper 104144, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104144
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/104144/1/MPRA_paper_104144.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrew E. Clark & Claudia Senik, 2011. "Is Happiness Different From Flourishing? Cross-Country Evidence from the ESS," Revue d'économie politique, Dalloz, vol. 121(1), pages 17-34.
    2. Stephen Enke, 1957. "Speculations on Population Growth and Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(1), pages 19-35.
    3. Peyton Young, H., 1998. "Social norms and economic welfare1," European Economic Review, Elsevier, vol. 42(3-5), pages 821-830, May.
    4. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    5. Mace, Ruth & Houston, Alasdair, 1989. "Pastoralist strategies for survival in unpredictable environments: A model of herd composition that maximises household viability," Agricultural Systems, Elsevier, vol. 31(2), pages 185-204.
    6. Raghunathan, Rajagopal & Pham, Michel Tuan, 1999. "All Negative Moods Are Not Equal: Motivational Influences of Anxiety and Sadness on Decision Making, , , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(1), pages 56-77, July.
    7. Anna Conte & M. Vittoria Levati & Chiara Nardi, 2018. "Risk Preferences and the Role of Emotions," Economica, London School of Economics and Political Science, vol. 85(338), pages 305-328, April.
    8. Sabatini, Fabio, 2007. "The Role of Social Capital in Economic Development," AICCON Working Papers 43-2007, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    9. Anna Conte & M. Vittoria Levati & Chiara Nardi, 2013. "The Role of Emotions on Risk Preferences: An Experimental Analysis," Jena Economics Research Papers 2013-046, Friedrich-Schiller-University Jena.
    10. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    11. Tewodaj Mogues, 2005. "Shocks, Livestock Asset Dynamics, and Social Capital in Ethiopia," Development and Comp Systems 0512006, University Library of Munich, Germany.
    12. Partha Dasgupta, 1995. "The Population Problem: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1879-1902, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikhil Masters & Tim Lloyd & Chris Starmer, 2022. "Do emotional carryover effects carry over?," Discussion Papers 2022-16, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    2. Colasante, Annarita & Marini, Matteo M. & Russo, Alberto, 2017. "Incidental emotions and risk-taking: An experimental analysis," MPRA Paper 76992, University Library of Munich, Germany.
    3. Matteo M. Marini, 2022. "20 years of emotions and risky choices in the lab: A meta-analysis," Working Papers 2022/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Lepori, Gabriele M., 2015. "Investor mood and demand for stocks: Evidence from popular TV series finales," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 33-47.
    5. López-Guzmán, Silvia & Sautua, Santiago I., 2024. "Effects of a fearful emotional state on financial decisions in the presence of prior outcome information," Journal of Economic Psychology, Elsevier, vol. 101(C).
    6. Matteo M. Marini, 2018. "20 years of emotions and risky choices in the lab: A meta-analysis," Working Papers 2018/14, Economics Department, Universitat Jaume I, Castellón (Spain).
    7. Tobias Thomas Prietzel, 2020. "The effect of emotion on risky decision making in the context of prospect theory: a comprehensive literature review," Management Review Quarterly, Springer, vol. 70(3), pages 313-353, August.
    8. Gabriele M. Lepori, 2021. "A nonrandom walk down Hollywood boulevard: Celebrity deaths and investor sentiment," The Financial Review, Eastern Finance Association, vol. 56(3), pages 591-613, August.
    9. Johansson-Stenman, Olof & Carlsson, Fredrik & Daruvala, Dinky, 2001. "Measuring Hypothetical Grandparents Preferences For Equality And Relative Standings," Working Papers in Economics 42, University of Gothenburg, Department of Economics.
    10. O'Donnell, Gus & Oswald, Andrew J., 2015. "National well-being policy and a weighted approach to human feelings," Ecological Economics, Elsevier, vol. 120(C), pages 59-70.
    11. Zheng Li, 2020. "Experimental Evidence on Socioeconomic Differences in Risk‐Taking and Risk Premiums," The Economic Record, The Economic Society of Australia, vol. 96(313), pages 140-152, June.
    12. Campos-Vazquez, Raymundo M. & Cuilty, Emilio, 2014. "The role of emotions on risk aversion: A Prospect Theory experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 1-9.
    13. Johansson-Stenman, Olof & Martinsson, Peter, 2006. "Honestly, why are you driving a BMW?," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 129-146, June.
    14. Oindrila Dey & Swapnendu Banerjee, 2022. "Incentives, Status and Thereafter: A Critical Survey," South Asian Journal of Macroeconomics and Public Finance, , vol. 11(1), pages 95-115, June.
    15. Gregor Gonza & Anže Burger, 2017. "Subjective Well-Being During the 2008 Economic Crisis: Identification of Mediating and Moderating Factors," Journal of Happiness Studies, Springer, vol. 18(6), pages 1763-1797, December.
    16. Stark, Oded & Budzinski, Wiktor & Jakubek, Marcin, 2019. "Pure rank preferences and variation in risk-taking behavior," Economics Letters, Elsevier, vol. 184(C).
    17. Friehe, Tim & Schildberg-Hörisch, Hannah, 2014. "Crime and Self-Control Revisited: Disentangling the Effect of Self-Control on Risk and Social Preferences," IZA Discussion Papers 8109, Institute of Labor Economics (IZA).
    18. Olof Johansson-Stenman & Fredrik Carlsson & Dinky Daruvala, 2002. "Measuring Future Grandparents" Preferences for Equality and Relative Standing," Economic Journal, Royal Economic Society, vol. 112(479), pages 362-383, April.
    19. Martín Leites & Camila Paleo & Xavier Ramos & Gonzalo Salas, 2022. "Choosing or Inheriting the Joneses: The origins of reference groups," Documentos de Trabajo (working papers) 22-04, Instituto de Economía - IECON.
    20. Frijters, Paul & Clark, Andrew E. & Krekel, Christian & Layard, Richard, 2020. "A happy choice: wellbeing as the goal of government," Behavioural Public Policy, Cambridge University Press, vol. 4(2), pages 126-165, July.

    More about this item

    Keywords

    Eastern Ethiopia Shared Value System Consumption Decision Process Group Decision Making;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:104144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.