Increased welfare without changing income classes by using new consumption function

چکیده مقاله

 A survey of United Kingdom data from 1989 to 2014 It was observed that the psychology was true in 2010, When Inflation (GDP deflator) and Consumer price index almost a rate increase (respectively 3.28, 3.17)^[1] But at the same time Household final consumption expenditure per capita (constant 2005 US$) has decreased (-0.43), And at the same time GDP per capita increased as indicator of welfare (0.068).

In order to understand how welfare will increase without changing income classes, it is necessary to understand how money is spent on consumption, In order for most consumers think to increase it, they must earn additional money and purchase with high level of prices, now when income and prices proportionally increase, According to Psychology Norm, Sensitivity people to inflation are higher than the increase in income, so they change the composition of the consumption portfolio to reduce expenditure so this leads to increased savings and utility that people get from savings will be greater than reduce consumption of just taking the portfolio to more use of less expensive materials leading to reduced expenditure that it causes a new consumption function  obtain and present. It is also consistent with the experimental observations.  

[1] - All are (annual %) and source computing researcher by  using WDI data

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