Utilization burden: implications in consumption and economic growth

Sun, Tianyu and Tian, Liu (2023): Utilization burden: implications in consumption and economic growth.

Abstract

This study explores the theoretical basis of demand saturation and proposes a novel concept named utilization burden, which denotes the physical or mental burden incurred to obtain utility. Correspondingly, we distinguish between quantity and quality of consumption, construct a general utility function, and derive an indicator named demand saturation rate. The analysis shows that the utilization burden helps to explain the economic dynamics across development stages. And, the long-term state of demand is affected by variations of the utilization burden, determining development directions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Demand saturation; Consumption; Economic growth
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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