This classic text has introduced generations of students to the economic theory of consumer behaviour. Written by 2015 Nobel Laureate Angus Deaton and John Muellbauer, the book begins with a self-contained presentation of the basic theory and its use in applied econometrics. These early chapters also include elementary extensions of the theory to labour supply, durable goods, the consumption function, and rationing. The rest of the book is divided into three parts. In the first of these the authors discuss restrictions on choice and aggregation problems. The next part consists of chapters on consumer index numbers; household characteristics, demand, and household welfare comparisons; and social welfare and inequality. The last part extends the coverage of consumer behaviour to include the quality of goods and household production theory, labour supply and human capital theory, the consumption function and intertemporal choice, the demand for durable goods, and choice under uncertainty.
List of tables and figures; Preface; Part I. Consumer Demand Analysis: 1. The limits to choice; 2. Preferences and demand; 3. The theory at work; 4. Extensions to the basic model; Part II. Separability and Aggregation: 5. Restrictions on preferences; 6. The theory of market demand; Part III. Welfare and Consumer Behaviour: 7. Consumer index numbers; 8. Household characteristics, demand, and household welfare comparisons; 9. Social welfare and inequality; Part IV. Extensions and Applications: 10. The quality of goods and household production theory; 11. Labor supply; 12. The consumption function and intertemporal choice; 13. The demand for durable goods; 14. Choice under uncertainty; References; List of notation; Name index; Subject index.