James Duesenberry facts for kids
Quick facts for kids
James Duesenberry
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| Born | July 18, 1918 West Virginia, US
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| Died | October 5, 2009 (aged 91) |
| Institution | Harvard University |
| Field | Microeconomics Behavioral economics |
| School or tradition |
Neo-Keynesian economics |
| Alma mater | University of Michigan |
| Doctoral advisor |
Arthur Smithies |
| Doctoral students |
Thomas Schelling Edwin Kuh John R. Meyer Harry Gordon Johnson |
| Influences | John Maynard Keynes Michał Kalecki John Hicks Paul Samuelson |
| Contributions | Relative income hypothesis |
James Stemble Duesenberry (born July 18, 1918 – died October 5, 2009) was an important American economist. He helped us understand how people spend and save money. His ideas were a big part of Keynesian economics, which looks at how a country's economy works.
In his 1949 book, Income, Saving and the Theory of Consumer Behavior, Duesenberry looked closely at how people make choices about spending. He thought that basic ideas about how people spend money were missing something important.
How Habits and Friends Affect Spending
Duesenberry believed that our spending habits are often formed over time. We get used to buying certain things. He also said that the people around us, like our friends and family, really affect what we buy.
He came up with an idea called the "demonstration effect." This means that people might change what they buy just by seeing what others are buying. For example, if your friends get new phones, you might want one too, even if your old phone works fine. This happens because people often want to keep up with others or improve their social status.
The Relative Income Hypothesis
This idea led to his main theory, called the relative income hypothesis. It says that how much you spend and save depends more on your income compared to others in your community. It's not just about how much money you have in total.
So, if you live in a neighborhood where everyone earns a lot, you might spend more to fit in. But if you live where incomes are lower, you might spend less, even if your own income is the same in both cases.
Background
James Duesenberry studied at the University of Michigan. He earned his first degree in 1939, a master's degree in 1941, and his highest degree (a Doctor of Philosophy) in 1948.
He became a professor of economics at Harvard University. He taught there for many years, from 1955 to 1989.
Duesenberry also worked for the government. He was part of the Council of Economic Advisers for President Lyndon Johnson. This was from 1966 to 1968.
See also
In Spanish: James Duesenberry para niños
