Robertson lag

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The Robertson Lag is an example of the systematic delay which the economy suffers from when conditions change and is named after the famous economist Dennis Robertson. This lag describes how a consumers change in income and wealth, a change in its consumption function, leads to a delayed change in its consumption. [1]

Sir Dennis Holme Robertson was an English economist who taught at Cambridge and London Universities.

Consumption function

In economics, the consumption function describes a relationship between consumption and disposable income. The concept is believed to have been introduced into macroeconomics by John Maynard Keynes in 1936, who used it to develop the notion of a government spending multiplier.

See also

Notes and references

  1. Burda, Wyplosz (2005): Macroeconomics: A European Text, Fourth Edition, Oxford University Press


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