AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
Tab. 1. Consumption and Product Data of the 15 Older EU
Member States (in billion PPS)
Product
Consumption
Austria, 2007
269
135
Austria, 2017
336
168
Belgium, 2007
323
159
Belgium, 2017
396
198
Denmark, 2007
175
81
Denmark, 2017
216
98
Finland, 2007
164
76
Finland, 2017
180
93
France, 2007
1 799
941
France, 2017
2 092
1 088
Germany, 2007
2 471
1 327
Germany, 2017
3 046
1 563
Greece, 2007
267
169
Greece, 2017
216
144
Ireland, 2007
170
76
Ireland, 2017
265
83
Italy, 2007
1 637
961
Italy, 2017
1 736
1 051
Luxembourg, 2007
33
10
Luxembourg, 2017
45
13
Netherlands, 2007
587
267
Netherlands, 2017
654
285
Portugal, 2007
223
141
Portugal, 2017
237
150
Spain, 2007
1 215
682
Spain, 2017
1 287
730
Sweden, 2007
306
131
Sweden, 2017
368
157
United Kingdom, 2007
1 784
1 102
United Kingdom, 2017
2 078
1 309
Source: Eurostat 2019
Three real forms of consumption function in case, of older EU
Member States:
1.
Typical consumption function with positive C0 and mpc
between 0 and 1
Austria
Denmark
France
Germany
Greece
Ireland
Luxembourg
Netherlands
Sweden
2.
Untypical consumption function with negative C0 and mpc
between 0 and 1
Belgium
Italy
Portugal
Spain
United Kingdom
3.
Exceptional consumption function with negative C0 and
mpc greater than 1
Finland
Austria was chosen as a representative of the 15 countries
analyzed because it is approximately in the middle of values.
Marginal propensity to consume of the countries analyzed is in
the range of 0.075 (Ireland) to 1.091 (Finland). Most countries
are located near the median of 0.492 (Austria).
Autonomous consumption of the countries analyzed is in the
range of -516 (Italy) to 314 (Germany). The largest group of
countries has slightly positive values (such as Austria with a
value of 3).
Consumption function parameters of Austria are mpc = 0.492
and C0 = 3. The complete consumption function is given in
equation (3).
(3)
Where C is the total consumption
3
autonomous consumption
0.492×Y induced consumption
0.492
marginal propensity to consume
Y
product
3.2 Macroeconomic Multipliers in the Older EU Member
States
The Keynesian multiplier is based on the marginal propensity to
consume. The Keynesian multiplier of the countries analyzed is
in the range of 1.081 (Ireland) to 10.242 (Italy). Most countries
are located near the median of 1.968 (Austria). The example of
Austria shows the calculation method (4) and the multiplier
value (5).
(4)
(5)
Where Y is the product (GDP)
3
autonomous consumption
A0
autonomous non-consumption inputs
0.492
marginal propensity to consume
1.968
Keynesian multiplier
3.3 Cybernetic Model of the Older EU Member States
The general cybernetic model Austria is based on values of
autonomous consumption C0 = 2.7 and marginal propensity to
consume mpc = 0.492. This means that the change in any
autonomous inputs (autonomous investments, autonomous
government spending, net exports) will be projected 1.968 times
in the economic output.
Figure 2 shows an actual cybernetic model of Austria with the
goods and services market. There are also included the values
from 2007 in the figure: autonomous non-consumption inputs
A0 = 136.8 and product Y = 269.3.
Fig. 2. Cybernetic Model of Austria in 2007 with the Goods and
Services Market.
2.7
136.8
269.3
AD
∆C
1
0.492
Firms
+
+
Households
Source: Author
3.4 Complex Dataset of the Older EU Member States
Older EU Member States can be described from the point of
view of consumption, the Keynesian multiplier and cyber model
by the parameters in Table 2.
Individual values were obtained as follows:
Y – real data
C – real data
- 253 -