BNET Business Dictionary

Business Definition for: Consumption

  • the quantity of resources that consumers use to satisfy their current needs and wants, measured by the sum of the current expenditure of the government and individual consumers

Wiktionary Definition for: Consumption

  • The act of consume consuming something. ''The fire's consumption of the forest caused ecological changes.''
  • The amount consume consumed. ''gross national consumption''
  • pathology obsolete tuberculosis Tuberculosis.

Additional Resources

Monsoon Worries, Consumption Slowdown Plague Indian Economy
The highlight of the last fortnight was RBI’s credit policy and Quarterly Economic Review. The RBI took a neutral stance and kept all the key rates unchanged given the state of economy. GDP growth is pegged at 6% with an upward bias. Inflation remains a worry for RBI and forecasted...
Tags: India, Emerging Markets, Saket Mundra
External links 2009-08-17
Consumption Risk and Expected Stock Returns
Following the textbook C-CAPM, the consumption risk of an asset is typically measured as the contemporaneous covariance of the marginal utility of consumption and the return on that asset. When measured this way, consumption risk is too small to explain the observed equity premium, is negatively related to expected excess...
Tags: Stock, Consumption, Asset Management, Investment, Operational Planning, Business Operations, Finance
White papers 2003-01-01
China: Is Retail Growth a Proxy for Consumption Growth?
Michael Pettis submits: A lot of people, via emails, letters and phone calls, have been asking me how I can be so pessimistic about consumption growth in China given the spectacular consumption growth figures coming out of China – 15.4% year to date. An editor who asked me...
Tags: China, Michael Pettis
External links 2009-09-14
Precautionary Saving and Consumption Fluctuations
This paper uses the consumption Euler equation to derive a decomposition of consumption growth into four sources. These are new information and three sources of predictable consumption growth: inter-temporal substitution, changes in the preferences for consumption, and incomplete markets for consumption insurance. The economic importance of precautionary saving rivals that...
Tags: Consumption, Financial Planning, Insurance, Investment, Financial Services, Finance, Business Operations, Corporate Insurance
White papers 2004-03-01
UBS CONSUMPTION INDICATOR STILL ON THE RISE
According to UBS: The consumption indicator calculated by UBS on a monthly basis rose slightly for the second time in a row in December, a signal that solid growth in real private consumption is going to continue. The UBS Consumption Indicator climbed to According to UBS: The consumption indicator calculated...
Tags: UBS AG
Research articles 2006-01-24
SWITZERLAND: UBS CONSUMPTION INDICATOR STILL ON THE RISE.
According to UBS: The consumption indicator calculated by UBS on a monthly basis rose slightly for the second time in a row in December, a signal that solid growth in real private consumption is going to continue. The UBS Consumption Indicator climbe According to UBS: The...
Tags: UBS AG
Research articles 2006-01-24
Consumption Risk and the Cross-Section of Expected Returns
This paper evaluates the central insight of the Consumption Capital Asset Pricing Model CCAPM that an asset's expected return is determined by its equilibrium risk to consumption. Rather than measure the risk of a portfolio by the contemporaneous covariance of its return and consumption growth as done in the previous...
Tags: Risk, Return, Strategy, Security, Management
White papers 2004-03-01
Consumption Risk and Cross-Sectional Returns
This paper evaluates the central insight of the Consumption Capital Asset Pricing Model (C-CAPM) that an asset's expected return is determined by its equilibrium risk to consumption. Rather that measure the risk of a portfolio by the contemporaneous covariance of its return and consumption growth as done in the previous...
Tags: Risk, Return, Strategy, Security, Management
White papers 2003-03-01
Optimal Taxation When Consumers Have Endogenous Benchmark Levels of Consumption
The paper examines optimal taxes in an overlapping generations economy in which each consumer's utility depends on consumption relative to a weighted average of consumption by others the benchmark level of consumption as well as on the level of the consumer's own consumption. The socially optimal balanced growth path is...
Tags: Consumption, Social Security, Taxes, Operational Accounting, Free Trade, Government, Financial Planning, Finance
White papers 2003-11-01
Sustainable Consumption And Production: Energy And Industry
Increases in energy and resource efficiency, together with cleaner technologies and improved products, have resulted in reduced energy and resource consumption and pollution per unit of production and consumption. However, the increased efficiency has generally been offset by even greater increases in overall production and consumption, resulting in continuing increases...
Tags: Consumption, Sustainable Development
White papers 2006-05-01
Production and Consumption of Meat: Implications for the Global Environment and Human Health
To fully understand, the detrimental effects of meat consumption on human health and the environment, it is important to understand the pathways through which these effects operate. This paper delineates the effects of meat production and consumption and the pathways through which these effects are manifest. It investigates meat production...
Tags: Environment, Health Care, Consumption, Vertical Industries, Benefits, Healthcare, Enterprise Software, Software, Human Resources
White papers 2001-12-13
Time-Variation in the Covariance Between Stock Returns and Consumption Growth
The conditional covariance between aggregate stock returns and aggregate consumption growth varies substantially over time. When stock market wealth is high relative to consumption, both the conditional covariance and correlation are high. This pattern is consistent with the composition effect, where agents' consumption growth is more closely tied to stock...
Tags: Stock, Consumption Growth, Investment, Finance
White papers 2004-08-18
What Do Aggregate Consumption Euler Equations Say About the Capital Income Tax Burden?
Aggregate consumption Euler equations fit financial asset return data poorly. But they fit the return on the capital stock well, which leads to three empirical findings relating to the capital income tax burden. First, capital taxation drives a wedge between consumption growth and the expected pre-tax capital return. Second, capital...
Tags: National Bureau Of Economic Research, Taxation, Income, Income Tax, Consumption Growth, Taxes, Payroll Solutions, Operational Accounting, Financial Planning, Finance
White papers 2004-01-01
DELL TO DIRECTLY SELL PRINTING CONSUMPTION MATERIALS
AsiaInfo Services 06-27-2005 Dell to Directly Sell Printing Consumption Materials BEIJING, Jun 27, 2005 SinoCast via COMTEX -- Dell is going to vend printing consumption materials by means of direct selling, and the move will help consumers b AsiaInfo Services...
Tags: Dell Computer Corp., printer, printing
Research articles 2005-06-27
DOMESTIC CONSUMPTION CONTRIBUTED 75% TO ECONOMY GROWTH IN Q3
AsiaInfo Services 11-07-2005 Domestic Consumption Contributed 75% to Economy Growth in Q3 BEIJING, Nov 07, 2005 SinoCast via COMTEX -- The contribution of domestic consumption to the economy growth increased in the third quarter of this year, AsiaInfo Services ...
Tags: World Bank
Research articles 2005-11-07
VISA CARD CONSUMPTION IN CHINA RANKED THIRD IN ASIA IN 2005
AsiaInfo Services 06-07-2006 Visa Card Consumption in China Ranked Third in Asia in 2005 BEIJING, Jun 07, 2006 SinoCast via COMTEX -- The amount of the consumption by Visa cardholders in China reached USD 2.7 billion last year, rising 31% ove...
Tags: Visa Inc.
Research articles 2006-06-07
Capital Consumption : An Alternative Methodology for Pricing Reinsurance
This paper introduces a capital consumption methodology for the price evaluation of reinsurance in a stochastic environment. It differs from the common practice of risk-based capital allocation. This method eliminates the need for capital allocation and release; creates scenarios that more closely model actual contract capital usage; allows more flexibility...
Tags: Casualty Actuarial Society, Allocation, Pricing Strategy, Consumption, Pricing, Marketing
White papers 2003-01-01
Consumption, Debt and Portfolio Choice: Testing the Effect of Bankruptcy Law
Consumer bankruptcy laws, which vary across states and over time, permit debtors to keep assets below a statutory exemption while debts are forgiven. High exemptions distort household portfolio decisions and tempt households to default on debts; but they also provide a crude form of consumption insurance. In this paper, information...
Tags: Exemption, Bankruptcy, Consumption Insurance, Litigation, Business Operations
White papers 2002-02-20
A Joint Framework For Category Purchase And Consumption Behavior
This article proposes a consistent utility-based framework to jointly explain a household's decisions on purchase incidence, brand choice and purchase quantity. The approach differs from other approaches, currently available in the literature, as it is able to take into account consumption dynamics. In the model, households derive utility from consumption,...
Tags: Brand, Social Science Electronic Publishing Inc., Branding, Marketing
White papers 2003-01-01
Local Organic Food: The Social Implications of Sustainable Consumption
In recent years organically-grown produce for local markets has become more popular with consumers, and re-localizing food chains has been put forward as a strategy for sustainable consumption due to the apparent benefits to local economies, communities, and environments. This paper aims to fill that knowledge gap and begin to...
Tags: Food, University Of East Anglia, Food & Beverage, Manufacturing
White papers 2004-10-07
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