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C0 + A0 as the total input of the cybernetic model
C0 as one parameter of the consumption function
A0 as the difference between the cybernetic model and
consumption function data
Tab. 2. Cybernetic Model Data of the 15 Older EU Member States (in billion PPS)
Product
Y
Total Consumption
C
Total Autonomous
Inputs
C0+A0
Autonomous
Consumption
C0
Non-consumption
Autonomous
Inputs
A0
Austria, 2007
269
135
137
3
134
Austria, 2017
336
168
171
168
Belgium, 2007
323
159
150
-14
164
Belgium, 2017
396
198
184
198
Denmark, 2007
175
81
100
6
95
Denmark, 2017
216
98
123
117
Finland, 2007
164
76
N/A
-103
N/A
Finland, 2017
180
93
N/A
N/A
France, 2007
1 799
941
896
38
858
France, 2017
2 092
1 088
1043
1004
Germany, 2007
2 471
1 327
1459
314
1144
Germany, 2017
3 046
1 563
1798
1483
Greece, 2007
267
169
137
39
98
Greece, 2017
216
144
111
72
Ireland, 2007
170
76
157
63
94
Ireland, 2017
265
83
245
182
Italy, 2007
1 637
961
160
-516
676
Italy, 2017
1 736
1 051
170
686
Luxembourg, 2007
33
10
26
3
23
Luxembourg, 2017
45
13
36
32
Netherlands, 2007
587
267
428
108
320
Netherlands, 2017
654
285
478
369
Portugal, 2007
223
141
79
-4
83
Portugal, 2017
237
150
84
88
Spain, 2007
1 215
682
403
-130
533
Spain, 2017
1 287
730
427
557
Sweden, 2007
306
131
178
4
175
Sweden, 2017
368
157
214
211
United Kingdom, 2007
1 784
1 102
530
-151
681
United Kingdom, 2017
2 078
1 309
618
769
Source: Author
4 Conclusion
The consumption function in the short-term, the Keynesian
multiplier of the two-sector economy, and the cybernetic model
with the goods and services market have been used to draw
conclusions of this paper. Concrete results are based on the
consumption data in the 15 older EU Member States.
There are three occurring forms of consumption function: typical
with positive C0 and mpc between 0 and 1, untypical with
negative C0 and mpc between 0 and 1, and exceptional with
negative C0 and mpc greater than 1.
Most of the older EU Member States are similar to Austria with
marginal propensity to consume mpc about 0.5 and multiplier
values about 2. However, there are exceptions in both ways. For
example, Ireland has a low mpc and a low multiplier. On the
other hand, countries like Italy and Finland have a high mpc and
a high multiplier.
Literature:
1. Eurostat:
National accounts and GDP.
2019.
https://ec.europa.eu/eurostat/statistics-explained/index.php/
National_accounts_and_GDP
2. Friedman, M.: A Theory of the Consumption Function.
Princeton: Princeton University Press. 1957.
3. Howitt, P.: J Econ Interac Coord. 1, 2006. pp 33-44.
4. Keynes, J. M.: The General Theory of Employment Interest
and Money. London: Palgrave Macmillan. 1936.
5. Keynes, J. M.: The Economic Journal. 47, 1937. pp 663-669.
6.
Máče, M., Rousek, P.: Makroekonomie pro technické školy.
Prague: Grada. 2013.
Primary Paper Section: A
Secondary Paper Section: AH
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