Consumer Economics

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Related terms: Consumer Science, Microeconomics, Consumer Movement

Consumer Economics, as a field of research and an acamedic major, is a branch of both Consumer Science and Economics. It is a broad field, principally concerned with microeconomic analysis behavior in units of consumers, families, or individuals (in contrast to traditional economics, which primarily government or business units). It sometimes also encompasses family financial planning and policy analysis. The term largely describes what was more commonly called "Home Economics" in the past.

Consumer Economics, or Home Economics, has its roots in pre-World War academia. The traditional economists had little interest in analyzing family units. When economic theory was insufficient to explain the phemonemon of women starting to enter the labor for en mass, Home Economics both gained attention and received important contributions from economic theorists. Major theoretical conerstones include Gary Becker's Household Production Model, time allocation models and Stigler's information search theory.

Over the past several decades the term "Consumer Economics" has increasingly replaced "Home Economics", for two major reasons. First, the family-unit economists were strongly influenced by the most recent "Consumer Era"; which was the "Modern Consumer Movement" of the 1970's. The connection between Consumer Economics and consumer-related politics has been overt, although the strength of the connection varies between Universities and individuals. Second, following the Women's Liberation movement primary and secondardy schools began adpoting "Home Economics" classes which would prove very dissimilar from the traditional idea of the field. Rather than teaching economic analysis or consumer policy, these classes have been stereotypically known for teaching household activities such as ironing, sewing, baking, etc. Family (Consumer) Economists found themselves shedding the "Home Economics" term to avoid association with the aforementioned public perceptions.

Sources:

Bryant, K. & Zick, C. The Economic Organization of the Household (2006). Cambridge University Press.

Department of Housing and Consumer Economics - University of Georgia