Revisit: The utility theory and consumption function

Thursday, March 12, 2015: 7:05 PM
Hideyuki Kamiryo, PhD; H. PhD; M.S. , Economic Sciences, Hiroshima Shudo University, Hiroshima, Japan
Is it a fact that the real rate of wages decreases while the growth rate of GDP increases globally in this world today?  This is a question lying between GDP-growth and enlarging individual inequality related to income-redistribution by country and/or area.  My answer is no or at least, the fact seems to be apparent as shown in statistical databases today.

Statistical analysis uses statistical databases and, develops various methods for clarifying and estimating constant/general/universal rules, principles, and hypotheses, by researchers’ models and systems; applying different fundamental assumptions and safe econometrics, against dizzy changing situations by year and vertical sectors.

My method for tactical analysis is one that connects causes with results in the real-assets in the 93-System of National Accounts, free from financial/market-assets as a mirror and, using my GDP-based Kamiryo Endogenous World table (KEWT) database.  The origin of my database is the  “International Financial Statistics Yearbooks,” IMF.  Most models and systems today are comparable, under perfect competition or, no regulation and laissez faire.

New findings express the empirical solution of my question, revisiting the Utility Theory and Consumption function.  GDP grows steadily and, the real rate of wages increases; matching harmoniously and globally with no arbitrary hurry-up policies.  There is no new theory for necessitating a new social system and new capitalism, where statistical data and my database are united.

Policy implications are: i) The Utility Theory and Consumption function are measured tightly and precisely.  ii) Macro policy is a foundation to micro-policies.  Micro-policies must be reversed and then, vertically reinforce macro-policies as strategies.  iii) Economic system holds beyond space and time.  Balanced, stationary and dynamic, with no unbalanced; or, Equilibrium, stationary and dynamic, with no disequilibrium.