The role of personal consumption in the economic system : case of Slovenia
Šlander Wostner, Sonja, 1976- ...
Personal consumption, according to Keynesian theory, affects economic growth directly and indirectly. This concept can be used in Leontief’s input-output analysis by adding an impact assessment ...through the production chain to an impact assessment through the changed perso- nal, investment and government spending that follows. Accounting for an increase in personal consumption, we have estimated the multiplier for Slovenia in 2015 to equal 2.5. Pursuant to Engel’s law, the economic structure changes with the growth of personal consumption. The growth of personal consumption leads to a transition of the economy from primary to secondary and tertiary stages.
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