Academia de Studii Economice Bucuresti

Amfiteatru Economic
AN ECONOMIC AND BUSINESS RESEARCH PERIODICAL
Facultatea de Business si Turism

Stochastic Dynamic Model on the Consumption – Saving Decision for Adjusting Products and Services Supply According with Consumers` Attainability

Author:Gabriela Prelipcean and Mircea Boscoianu

JEL:C91, D91, D12, D18.

DOI:

Keywords:Consumer behaviour, consumer profile, consumption-savings decision, stochastic dynamic model, education and awareness of consumer/ responsibility of producer

Abstract:
The recent crisis and turbulences have significantly changed the consumers’ behavior, especially through its access possibility and satisfaction, but also the new dynamic flexible adjustment of the supply of goods and services. The access possibility and consumer satisfaction should be analyzed in a broader context of corporate responsibility, including financial institutions. This contribution gives an answer to the current situation in Romania as an emerging country, strongly affected by the global crisis. Empowering producers and harmonize their interests with the interests of consumers really require a significant revision of the quantitative models used to study long-term consumption-saving behavior, with a new model, adapted to the current conditions in Romania in the post-crisis context. Based on the general idea of the model developed by Hai, Krueger, Postlewaite (2013) we propose a new way of exploiting the results considering the dynamics of innovative adaptation based on Brownian motion, but also the integration of the cyclicality concept, the stochastic shocks analyzed by Levy and extensive interaction with capital markets characterized by higher returns and volatility.
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