Households as a subject of market relations. Household (Household) is a Household in a market economic system

HOUSEHOLDS IN THE MODERN ECONOMIC SYSTEM

V.Yu. GIRNIK

The article examines the household as one of the important subjects economic activity, its history of development, forms and role in a modern market economy.

Key words: household, subject of economic activity, phenomenon of human activity, modern economic system, economic unit.

Households at the present stage are one of the important subjects of economic activity, the results of which determine not only the well-being of an individual economic unit, but also the entire population of the country. Along with commercial enterprises and the state, households participate in all micro- and macro-regulatory processes.

A household is defined as a household run by one or more persons living together and sharing a common budget. The household unites all hired workers, owners of large and small capital, land, securities, who are and are not employed in social production. A household is a broader concept than a family, and unlike a family, households include not only relatives and can consist of one, two or more members.

The household in the modern economy represents the main force in the social production and distribution of goods and services. In different historical eras depending on the nature of social relations, the place and role, structure and functions, size and stability, rights and responsibilities, position in society or the socio-economic status of the household changed.

Households were first mentioned in the works of the ancient Athenian thinker Xenophon (430-355 BC). His works contain applied economic issues, as well as knowledge of agricultural technology for growing grain and the basics of gardening. Aristotle also discussed the household, and coined the term “economics.” As a synonym for household, and as a special science, Aristotle’s “economics” reflected the organization of business operations, distribution, including market relations with other households, as well as with other forms of economic cells of that society: temple households and the state economy. Aristotle pointed out that the main goal of a household, first of all, should be the acquisition of wealth.

The processing household is the historically first form of household. It consists of maintaining the place of residence in order, repairing housing, maintaining a fire, preparing food, processing the gifts of nature, etc. These forms of labor have not yet become production. Such households are historically the original and today their simplest form. In this form, the household is found as a place of residence, sleep, rest, storage of kitchen and other utensils; work here ensures the preservation of the gifts of nature through drying, fermenting, soaking, salting

niya, etc.

The producing household emerges with the development of agriculture. It is expressed in the creation of tools of production and their improvement, in the cultivation of agricultural plants, in the breeding of domestic animals. Thus, labor gradually turned into production. Housekeeping became the basis of the domestic industry of the Middle Ages. It should be noted that even today such types of households are widespread in which they live in the same place, do handicrafts and sometimes trade in manufactured goods (for example, handicrafts).

Housekeeping is based on work, but is not limited to it. As production becomes isolated from the household as an enterprise, the household's production function falls. The degeneration of the productive function of households is a process that has not yet been completed and, apparently, will not be completed soon. The productive function of households remains the same in modern world Households account for 30% of the world's economic activity. In the future, it will continue to be modified into a consumer cell of a market economy.

The household became the basis for the emergence of exploitative formations. In this regard, it should be noted that there is an excessive idealization of the interpretation of households in some textbooks on economic sciences: in them, households are usually treated as consumer units of the economy. In fact, many modern households have manufacturing.

The consumer household is the latest form of household that is rapidly spreading in market economy especially in modern cities. In a consumer household there is no production, which is isolated as a separate enterprise. The household turns out to be the main supplier of hired labor for production that is not carried out within its framework, and the consumer of goods from production enterprises. A consumer household does not exclude production processes, which are an auxiliary source of income for the entire team of a particular household.

The household is a complex phenomenon of human activity that changes over time, and it is quite difficult to take into account the entire spectrum of influence on the phenomena and processes occurring in it.

The modern household is characterized by heterogeneity, complexity, dynamism of the processes occurring in it. In

In industrial society, the nature of economic relations has changed, as well as the role of man in the modern economic system. Human activity becomes more intense and complex. The achievements of technological progress are associated with the transformation of the basic principles of household activities. The main motive for their development is not the increase in wealth, but the desire for self-expression, for creative activity each member of the household. Such qualities become more significant for them Everyday life like security, freedom, justice.

Today in Russia, without the development of households, a holistic perception of the country’s economy is impossible. In Russia today, according to the latest census data, there are approximately 53 million households, including 41 million family households and about 12 million households of persons who do not have a family or have lost contact with it. This suggests that households play a large role in the development of the country and proves the need to study their place and role in the modern economy.

The role of households in the development of market relations is determined by the following points:

Firstly, households provide the necessary level of consumer demand, without which the functioning of the market mechanism is impossible.

Secondly, household savings are a source of savings and investment, which is very important in a developing economy.

Thirdly, households are subjects of supply in the market of production factors (entrepreneurial ability and labor).

Fourthly, it is the household that is the basis for the formation of production and sales human capital.

Fifthly, the ability of households to establish a family business contributes not only to the growth of personal well-being, but also to the development of a market economy as a whole.

Households are directly involved, along with firms and the state, in the movement of resources, income and goods. Households are the owners of resources that come in the form of factor services to firms. Payments for resources serve as the material basis for household income and are used to purchase consumer goods and services created by firms. The flow of resources, money, as well as goods and services is constant. Moreover cash flows move in the opposite direction to the movement of resources, goods and services.

Specifically, the relationship between households and firms and the state is as follows: they supply firms and the state with production resources: labor, natural, capital, entrepreneurial abilities; demand for consumer goods and services produced by firms and state-owned enterprises; replenish the revenue side of the state budget by paying taxes and other types of obligatory payments; provide their

savings for firms and the state for investment in production.

In the conditions of market relations in the triad of subjects of a market economy - household, state, firm - it is the household that plays the leading role. Through his motivational economic activity, the entire system of economic relations of society is refracted through a prism.

That is why modern domestic economic thought is increasingly turning its attention to the household as a subject of economic activity that has the most direct impact on the country’s economy. In addition, this interest is also explained by the awareness of the insufficiency of the approach to the household as an economic unit that has developed in socio-economic research, despite the fact that it has been functioning and developing for many centuries.

Literature:

1. Borisov A.B. Large economic dictionary. - M.: Book World, 2003.

2. Borisov E.F. Economic theory. M.: Yurist, 2003.

3. Voitov A.G. History of Economic Thought. M.: Publishing and trading corporation "Dashkov and K", 2000.

4. Kulikov L.M. Fundamentals of economic theory: textbook. allowance. M.: Finance and Statistics, 2007.

5. General economic theory. Textbook. / Under the general editorship. Vidyapina V.I., Zhuravleva G.P.. M.,

To characterize an economic entity, you need to point out:

source and amount of his income

directions and amount of its expenses

A household is property cash, tools used by people at home. It covers economic processes occurring in the place where people and families live.

Household income is private income. They are formed due to:

wages

owner's profit

capital

interest and dividend

participation in a joint stock company

natural resources (land)

The income of each household is spent in three areas:

payment of taxes to the state

satisfaction of personal needs

formation of personal savings

Savings are the after-tax, non-consumable portion of annual personal income.

household income. The following types of savings are distinguished:

household (in cash)

institutional (bank deposits, insurance policies, bonds, shares, etc.):

1.a) “protective” - actions to preserve the original purchasing power of a given amount of money. They act as independent insurance against unpredictable circumstances.

2.b) “speculative” - actions to multiply the purchasing power of a given amount of money. They play the role of a kind of “family business” according to the rules of a market economy.

3. In general, savings are deferred demand for real goods (goods and services), and this “deferral” turns savings into a constant “sword of Damocles” hanging over a market economy, i.e.:

a relative increase in savings (as personal income increases) means a relative decrease in demand for consumer goods and services, which can cause a decrease in the production of these goods and an increase in unemployment (unemployment).

an excess of “household” savings can undermine the country’s economy, so it is necessary to stimulate institutional savings, i.e. participation of money in the circulation (economy) of the country.

Consumer spending is that part of personal income that goes irrevocably and interest-free to producers.

And among the objects of consumer spending we can highlight:

non-durable goods (life - less than a year)

Durable goods (lifetime - more than a year)

The household is one of the most important market institutions. The role of households in the development of market relations is relatively large and is determined by the following points:

Firstly, households provide the necessary level of consumer demand, without which the functioning of the market mechanism is impossible.

Secondly, household savings are a source of savings and investment, which is very important in a developing economy.

Thirdly, households are subjects of supply in the market of production factors (entrepreneurial ability and labor).

Fourthly, it is the household that is the basis for the formation of production and sale of human capital.

Fifthly, the ability of households to establish a family business contributes not only to the growth of personal well-being, but also to the development of a market economy as a whole.

We know that one of the subjects of a market economy is the household, which primarily represents the natural sector of the modern economy. Along with firms and the state, it is an economic unit consisting of one or more individuals who make financial decisions and supply the economy with initial productive resources. The funds received for resources are used to purchase goods and services that satisfy the immediate material, spiritual and social needs of a person. Thus, households are organized entities conducting economic activities to meet needs.

In a real (market) economy, the entire mass of resources makes up the total resource market, which in turn consists of many markets for specific resources. The owners of these resources are mainly considered to be households. In those cases where the owners of resources are firms or the state, the latter act as independent owners of resources, i.e. like households. All types of payment for factor resources in an ordinary economic situation appear in the form of general terms of income or profit.

As you know, market subjects are sellers and buyers. Households, firms (enterprises, businesses), and the state (government) act as sellers and buyers. Households (consisting of one or more individuals), on the one hand, are buyers of goods and services, on the other, they have at their disposal factors of production (labor, land, which they can sell or rent). They can own shares, thanks to which they also become owners of the means of production (capital). In addition, households act as buyers in the market for goods and services provided by firms and state-owned enterprises. At the same time, they themselves are sellers in the resource market. Income received from the sale of factors of production (primarily labor) is used to satisfy personal needs.

Firms, having money capital at their disposal, purchase the factors of production they need from households on the resource market and use them to produce goods and services. Their main goal is to make a profit. Firms sell the goods and services they produce to households on the goods and services market, using the income they receive to expand production activities.

The state also participates in the circular model, providing its services to households and firms through the country’s national defense system, education and health care systems, etc. To ensure the production of these services, the state collects money from households and firms in the form of taxes. From them the state buys the resources, goods and services necessary for its business activity.

In addition to providing services, the government makes various cash payments to firms and households. We are mainly talking about transfer payments. An important part of transfer payments is government cash payments for social needs - pensions, benefits and other types of assistance to the disabled, unemployed and other low-income segments of the population. The second area of transfer payments is grants and subsidies (cash payments provided by the government to firms to encourage the production of certain goods and services). Subsidies and subsidies can be provided both to producers of goods and services and to their consumers, including households.

The circulation model clearly illustrates the interconnection of all participants in market activity. They are interested in each other; the well-being of one market participant depends on the well-being of others. Even the same market entity can be part of a household, a government agency, or a business participant. For example, when working as a government employee, he is a representative of a government organization; by owning securities of a corporation, he represents the business; spending his income for personal consumption, he is a member of the household.

All participants in market relations are real owners and have their own economic interests, which may coincide or contradict the interests of other entities. Households try to satisfy their wants and needs as much as possible; firms - to obtain maximum profit, the state - to achieve maximum welfare of society. Each of them occupies a certain place in the system of social division of labor and, in order to realize their economic interests, must offer what is necessary for other subjects - carriers of market relations.

Three main subjects of market economy:

Firms – State – Households

The household - an economic entity that consists of one individual leading an independent household or, more often, a group of people living together and leading a common household.

Signs:

- cohabitation and housekeeping

- separate budget

Possession of certain resources

Independence in making business decisions

Striving for maximum satisfaction of needs

Family is a group of people united by family ties and nothing more. A family can be a household if they live together and have a common budget.

Home economics (routine)- this is economic activity exclusively inside the house: cleaning, cooking, childcare, etc. Household activities include, in addition to the home economy (housekeeping), market interaction with other economic entities.

Types of households:

1. Territorial and regional affiliation(regions, natural and climatic zones, etc.).

2. Labor potential(number of able-bodied people, level of education, professional training)

3. Demographic characteristics(family and non-family households, number of family members, gender and age characteristics), (Majority in the Russian Federation - 94% -133 million people - family households).

4. Property characteristics and social status (income, nature and area of housing, availability of a car, dacha, etc.)

Household income is the personal income of its members, which is formed from various sources: labor, social, secondary and other sources.

The expenses of each household are carried out in the following areas:

· Purchase of food and services

· Housing and utility expenses

· Payment of taxes and social insurance

· Expenses for education and recreation

· Formation of savings (cash and market: bank, etc.)

79% - low-income households (less than 10,000 rubles / member)

Less than 1% (more than RUB 100,000/member)

“Middle class” - 20% (from 10 to 100 thousand rubles/member)

Household functions:

- consumer– formation of consumer demand

- investment– savings -> investment -> economic growth

- entrepreneurial function- family business

- reproductive function– the reproduction of human capital and the supply of factors of production on the market, first of all, involve the abilities and labor force.

Formation of human capital (Providing conditions for childbirth, primary socialization of children).

Preservation of human capital (household management, provision of recreational conditions).

Realization of human capital (Providing for family business, Providing individual economic participation).

Features of households in Soviet economy:

Relative equalization of household wealth

Shortage of goods and dependence of consumer choice not so much on monetary income, but on place in the party-state hierarchy

State monopoly in the field of employment, ban on private enterprise

State paternalism and formal constitutional guarantees for work, education, etc., but in the case of “dissidence” - the rapid destruction of this household

Total control of state and quasi-public organizations (party committees, local committees, Komsomol organizations) over the personal lives of households

New institutional conditions:

The emergence and development of institutions of private property and entrepreneurship

Formation of the financial market

The emergence of a saturated market for consumer services and goods

Instability of the institutional environment

Peculiarities modern Russian households:

The economic independence of households is increasing and their dependence on government patronage is decreasing

Diversification of employment of household members, expansion of double, triple and even secondary employment

Differentiation of households by income level and consumer behavior: demonstrative snobbish (ostentatious) consumption of the “quickly rich” and the PFM-oriented majority of households

The home economy (routine) acquires more civilized features (modern household appliances, use of new technologies, home safety equipment)

The main problem is an increase in personal income and a decrease in the number of low-income households.

Faculty of Economics and Management

Department of Human Resources Management

COURSE WORK

in the discipline "Economic Theory"

Household as a subject of market relations

Introduction………………………………………………………………………………………...2

1 Household as a subject of market relations…………………….3

1.1 Concept and types of households…………………………………………….3

1.2 Households as market subjects……………………………………………………5

1.3 Connections and sources of household income………………………….10

1.4 Transformation of the household ownership structure in an emerging market economy………………………………………………………...14

2 Family and its role in the household……………………………………...16

2.1 Household and family as subjects of a market economy……………..16

2.2 Costs and benefits of marriage……………………………………………………………..17

2.3 Economic role of family and household……………………………...19

2.4 Family functions………………………………………………………………20

2.5 Family budget………………………………………………………...22

Conclusion………………………………………………………………………………….23

List of illustrations…………………………………………………………….25

List of references………………………………………………………...…26

Introduction
For a long time, in domestic economic science, the family and its socio-economic problems did not serve as the object of theoretical research. The household did not fit into the political-economic concept of directly socialized socialist production.
The formation of a market economy significantly changed the conditions of existence of households, imposed new demands on their economic and social behavior, and expanded the scope of socio-economic activities of households.
Nowadays, the household is going through a rather difficult period. With the destruction of the public sector, the transition from a planned administrative system to a market economy, a sharp decrease in the share of wages and social transfers in the total family budget, the majority of households are placed in conditions where, in order to maintain an acceptable standard of living and replenish the consumer budget, the family can only count on own strength. Therefore, the situation and livelihoods of households must now be considered in parallel, both from the point of view of their existence in market conditions, and for many families in terms of ensuring survival in transition period, which at the initial stage was accompanied by an economic crisis. Time significantly restructures the strategy and tactics of a household and forces its members to invent new combined methods of economic functioning and transform already established ones to new economic realities.
New socio-economic conditions also required a different attitude towards households, when considering which greater emphasis was placed on the economic and social aspects of their study.
It is important to note that in a market economy, households act as an objectively necessary economic entity and object of the market economy.
However, the study of socio-economic problems of the household, its place and functions in a modern market economy has not been properly reflected in economic science (not only domestic, but also foreign).
Taking these circumstances into account, a detailed consideration of the most common economic and social functions households because they currently exhibit a variety of adaptation strategies.

Chapter 1. Household as a subject of market relations.

1.1 Concept and types of households

A household is an economic unit consisting of one or more people. It ensures the production and reproduction of human capital. She makes her own decisions in the consumer market. She is the owner of any factor of production (land, capital, labor). Strives to satisfy his needs as much as possible. In addition to families, organizations engaged in production (church, trade union, party) can also be called a household.

The household is one of the three subjects of economic activity. Household Covers economic objects and processes occurring where a person or family permanently resides.

A household is interpreted as an economic unit consisting of one or more persons, united by a common budget and place of residence, which supplies the economy with resources and uses the money received for them to purchase goods and services that satisfy the material needs of a person. The concept of a household unites all consumers, employees, owners of large and small capital, land, means of production, persons employed and unemployed in social production.

In general, a household can be characterized as an independent economic unit consisting of one or more people who have some kind of productive resource and strive to satisfy their needs as fully as possible.

The main characteristics of a household are:

Living together and arranging life.
Joint farming.
Possession of certain resources.
Independence in making business decisions.
Striving for maximum satisfaction of needs.

Types of households:

1) Single households or simply households.

Single households are formed by individuals, separate or several families, as well as these families together with individuals. Single households in the Russian Federation number 139 million. people, which is 94% of the country's total population.

2) Group households.

Group households are formed by permanent or temporary groups of people for the joint organization and arrangement of their lives in various dormitories and boarding schools, in soldier barracks, monastery cells and barracks of correctional labor institutions. They unite 9 million in the Russian Federation. people, or 6% of the country's total population.

Households are classified according to the following characteristics:

1) Territorial and regional affiliation (locality, region of the country, natural climatic zone, etc.).

2) Demographic characteristics (family and non-family households, number of household members, age and gender characteristics).

3) Property characteristics (nature of housing, number of rooms, presence of a car, dacha, land plot and so on.).

4) Income characteristics (average per capita income, income group, sources of income, etc.).

5) Economic characteristics(employment, industry, economic sector, type of enterprise, position, etc.).

6) Labor potential (number of able-bodied people, level of education, professional training, etc.).

7) Social status of the household (determined by the head of the family or the family member with the maximum income).

1.2 Households as market actors

In order to characterize an economic entity, you need to point out:

1) the source and amount of his income;

Household is property, money, tools used by people at home. It covers economic processes occurring in the place where people and families live.

Household income is private income. They are formed due to:

1) wages;

3) the owner’s profit;

4) capital;

5) interest and dividend;

6) participation in a joint stock company;

8) natural resources (land).

The income of each household is spent in three areas:

1)payment of taxes to the state;

2) satisfaction of personal needs;

3) formation of personal savings.

Savings are the after-tax, non-consumable portion of a household's annual personal income.

The following types of savings are distinguished:

1) household (in cash);

2) institutional (bank deposits, insurance policies, bonds, shares, etc.):

a) “protective” - actions to preserve the original purchasing power of a given amount of money. They act as independent insurance against unpredictable circumstances.

b) “speculative” - actions to multiply the purchasing power of a given amount of money. They play the role of a kind of “family business” according to the rules of a market economy.

In general, savings are deferred demand for real goods (goods and services), and this “deferral” turns savings into a constant “sword of Damocles” hanging over a market economy, i.e.:

1) a relative increase in savings (as personal income grows) means a relative decrease in demand for consumer goods and services, which can cause a reduction in the production of these goods and an increase in unemployment (unemployment);

2) the excess of “household” savings can undermine the country’s economy, therefore it is necessary to stimulate institutional savings, i.e. participation of money in the circulation (economy) of the country.

Consumer spending is that part of personal income that goes irrevocably and interest-free to producers.

And among the objects of consumer spending we can highlight:

1) non-durable goods (period - less than a year);

2) durable goods (lifetime - more than a year)

The household is one of the most important market institutions. The role of households in the development of market relations is relatively large and is determined by the following points:

Firstly, households provide the necessary level of consumer demand, without which the functioning of the market mechanism is impossible.

Secondly, household savings are a source of savings and investment, which is very important in a developing economy.

Thirdly, households are subjects of supply in the market of factors of production (entrepreneurial ability and labor).

Fourthly, it is the household that is the basis for the formation of production and sale of human capital.

Fifthly, the ability of households to establish a family business contributes not only to the growth of personal well-being, but also to the development of a market economy as a whole.

We know that market subjects are sellers and buyers. Households, firms (enterprises, businesses), and the state (government) act as sellers and buyers. Households (consisting of one or more individuals), on the one hand, are buyers of goods and services, on the other, they have at their disposal factors of production (labor, land, which they can sell or rent). They can own shares, thanks to which they also become owners of the means of production (capital). In addition, households act as buyers in the market for goods and services provided by firms and state-owned enterprises. At the same time, they themselves are sellers in the resource market. Income received from the sale of factors of production (primarily labor) is used to satisfy personal needs.

1.3 Connections and sources of household income

The largest source of household income is wage, reaching at developed countries ah three quarters of the total proceeds.

Households are directly involved, along with firms and the state, in the movement of resources, income and goods.

The table below shows that all resources belong to households and come in the form of factor services to firms. Payments for resources serve as the material basis for household income and are used to purchase consumer goods and services created by firms. The flow of resources, money, as well as goods and services is constant. Moreover, cash flows move in the direction opposite to the movement of resources, goods and services.

In the process of economic circulation, along with households and firms, various government and credit and banking institutions take part. Their participation obliges and provides the opportunity for households to spend not all of their income on consumption, since it is necessary to transfer part of the income necessary to receive the state budget to the tax system. The remaining income in the form of savings is kept in credit institutions and is used to purchase securities, shares, etc. Households receive so-called transfer payments from the state in the form of pensions, benefits, scholarships, etc. The figure also shows other important relationships that arise in the process of economic circulation.

Specifically, the relationship between households and firms and the state is as follows:

1) They supply firms and the state with production resources: labor, natural, capital, entrepreneurial abilities.

2) They present demand for consumer goods and services produced by firms and state-owned enterprises.

3) Replenish the revenue side of the state budget through the payment of taxes and other types of obligatory payments.

4) Provide their savings to firms and the state for investment in production.

In addition, it is worth mentioning that the role of households in social production and consumption of goods is quite large, namely:

Households are consumers of 2/3 of all consumer goods and services produced by firms and state enterprises. Manufacturers are guided by their demand when solving the main economic issues: what and how much, how and for whom to produce.

Households are suppliers of resources, that is, they provide the most important conditions for the production of economic goods.

Households replenish the revenue side of the state budget at all levels.

Households, through the participation of their members in the management of firms and state-owned enterprises, also influence the organization of production.

In all countries with a market economy, there are mechanisms for state redistribution of monetary income, therefore it is customary to separate the primary and disposable monetary income of households (the population).

Primary income of private households is formed as a result of market transactions - the sale of factors of production and goods. Accordingly, they are formed from wages of employees (remuneration for labor as a factor of production), income from property, business income, and income from self-employment. In this case, all interest payable is deducted from the resulting amount of income.

Next, the mechanisms of state income redistribution come into play. All social payments and transfers (except those issued in kind) are added to the primary income of households, and income and property taxes, social contributions and payments are paid from this amount. This leaves the household with disposable income.

Comparison of cost indicators - both over time and between regions - always presents a difficult statistical problem. Even in countries with a single currency, price levels and consumer standards, and application in exchange rate calculations introduces even more differences.

To ensure direct comparability of the most important macroeconomic indicators of countries and regions - primarily gross domestic product (GDP) and other national accounts aggregates - the International Comparison Program uses their conversion into actual purchasing power parities (PPP) per capita. Similar procedures are used in Eurostat studies when comparing household income and gross income. regional product. In this case, to recalculate household income, only the consumer component of PPP is used - consumer purchasing power parity (CPPP).

If we talk about the level of cash income of private households in the member countries of the European Union, it differs by 2 times, and taking into account the candidate countries - by more than 5 times. For example, let's look at the following data:

The highest primary incomes are among households in Germany, half as low in Portugal. The level of disposable income is noticeably lower, especially in Germany, and the differences between these countries are reduced to 1.8 times.

Among the candidate countries for accession to the European Union that provided relevant data, household incomes are highest in the Czech Republic and lowest in Romania. The differences in primary income are 2.3 times, and in disposable income - 2.1 times.

There are very significant differences in the ratio of disposable and primary income. In countries Northern Europe(Netherlands, Sweden, Denmark, Belgium and Finland) households have about 74-80% of their primary income at their disposal, and in Portugal and Greece - 95-98%. Among candidate countries for accession to the European Union, the ratio of household disposable income to primary income ranges from 88% in the Czech Republic to 109% in Lithuania. Note that the excess of disposable cash income over primary income is also observed in a number of regions of the UK, Germany, Greece, Italy, France, Poland, Hungary and Romania, which is due to the redistribution policy of the state, implemented in the form of various social payments.

The ratio of disposable cash income of households to gross domestic product also varies. IN Scandinavian countries and Ireland, the average per capita disposable cash income is 42-45% of the average per capita GDP, in Germany, Italy, Great Britain - 65%, Portugal - more than 76%, in the candidate countries it ranges from 50% in the Czech Republic to 63% in Poland. Lower levels of disposable money income compared to primary income and the level of GDP indicate greater government activity in the redistribution of income, but does not always mean a decrease in the level of well-being, since it can provide gains through the development of public transport.

1.4 Transformation of the household ownership structure in an emerging market economy.7
The formation of a market economy radically changed the living conditions of households and introduced new conditions for their economic and social behavior. In the process of formation and development of market relations, the role and place of households was transformed, as a result of which they began to occupy a dominant position among the main macro-agents of the market.
A household is a separate economic unit consisting of one or more economic entities and receives income from the provision of basic factors of production to the market. In addition, an important characteristic of households is their permanent and steadily increasing demand for goods and services to satisfy their needs.
The object of the study is the transformation of the property structure of households using the example of:

1) housing stock that is privately owned by citizens;
2) personal passenger vehicles;
3) personal savings of households.
The above-mentioned research objects are significant sources of property, on the basis of which the dynamics of the property structure of households can be clearly traced. Despite the fact that the number of households compared to Soviet period decreased significantly due to well-known reasons to 51.6 million in 2005, their well-being increased sharply./12, p.51/ To prove the above-mentioned fact, the following data can be cited: in 1980, citizens owned 620 million. m2, that is, 33.3% of the total housing stock. While in 2006 the same figure accounted for 2480 million m2, that is, 83.9% of the total housing stock. This change is due to the following factors: firstly, political, according to which, in connection with the transition from a command-administrative economy to a market economy, the institution of a private owner appeared, which allowed households to privatize their own real estate. Secondly, economic, consisting in a relative increase in the well-being of citizens. However, it is worth noting that the further growth of residential property of citizens is hampered not only by the rather low level of income of the overwhelming majority of households, but also by the decreased supply of housing under construction. For comparison, in 1980, 59.4 million m2 of non-business residential space was commissioned, and in 2005 - only 43.6 million m2. And, as you know, to successfully solve the housing problem, it is necessary to build 1 m 2 of housing per year for each citizen, that is, approximately 142 million m 2.
After real estate, the next major source of household ownership is the car. Behind last years The household vehicle fleet increased significantly, from 4195 thousand in 1980 to 23060 thousand in 2005, that is, by 549.7%. The above-mentioned significant increase in vehicles owned by citizens is due both to the removal of the Iron Curtain, which caused an unprecedented influx of foreign cars into the country, and to the rapid boom in car loans currently observed. The next significant property of households is their personal savings. Rapid growth of financial assets Russian families occurred against the backdrop of paradoxical factors, among which the main ones are: firstly, fairly low wages, the average monthly nominal level of which, according to Federal service state statistics, in 2005 amounted to 8554 rubles. Secondly, a high level of inflation, which reduces the amount of personal savings. Thirdly, the population’s distrust in the banking system, caused by well-known crisis phenomena, including the August 1998 default. However, the share of savings in the overall structure of population savings increased from 3.6% in 1980 to 18.8% in 2005 /16, p.390/ The sources of distribution of these savings lined up in the following sequence: 12% of households preferred to keep their money in banks, 16% still keep money under their mattress, and more than 70% of the population have no savings at all.
Thus, despite the current relatively favorable picture in the structure of household ownership for the objects under study - such as housing, vehicles and financial assets, it should be noted that households are not yet fulfilling their role in the Russian economy fully enough. In other words, while they are the main supplier of factors of production, they actually provide the market primarily with labor. In addition, the state needs to pursue a more balanced and socially oriented policy, leading to:
1) growth in the financial situation of the population due to an increase in both the level of wages and other factor incomes;
2) creation of new jobs that help reduce unemployment;

3) organizing a system of institutions that promote sustainable economic development, generating prerequisites for active and effective behavior households in a market economy.

Chapter 2. Family and its role in the household.
2.1 Household and family as subjects of a market economy
The term “household” closely intersects with the term “family”. However, these terminological differences are explained by the fact that “household” is an economic unit, and “family” is a social unit.
A family, or more generally a household, in a market economy is an economic unit consisting of one or more persons, which independently makes decisions, strives to maximize the satisfaction of its needs, giving them certain preferences, and is the owner of any factor of production (most often labor force). ), ensures production and reproduction of “human capital”.
Family - This is, as a rule, a small group of people consciously organized on the basis of family ties and commonality of life, whose life activities are aimed at realizing the social, economic and spiritual needs of the individual, the family itself and society as a whole.
In every known society, the family has always remained the main force in the production and distribution of goods and services.
The family is influenced by economic, legal, ideological, and moral relations. Traditionally, a family begins with marriage. Marriages can be said to take place in the "market", which "destinates" men and women to each other or leaves them alone until better opportunities.
2.2 Costs and benefits of marriage
People's behavior regarding marriage is rational. This means, of course, that both sexes maximize their utilities when choosing a spouse.
This also means that in the process of getting married, each individual must ask himself two fundamental questions:

What are the overall costs and benefits of marriage compared to single life;
How long and hard should he or she search for a suitable partner, given these costs and benefits?
In weighing the pros and cons, an individual must take into account several important considerations regarding the costs of marriage. The most important thing for many is the loss (cost) of independence. People are never completely free to do what they want: they must consider the impact of their actions on others.
Family members are generally prepared for future costs, including the complexity and length of time required to reach a solution. This is because agreement is more difficult to achieve with a larger number of participants.
The family is involved in the production of goods and services that are shared among all its members. These things are available in the same quantity and quality to everyone. Common goods may not fully suit the tastes of any one individual, but they are goods that everyone agrees to buy. In such cases, and there are many of them, the individual has to bear the costs of not receiving the goods in quantity and quality that most fully satisfies his preferences.
Because family decisions are made democratically, family members should have a say in how the burden of producing goods is shared by determining who contributes income, time, or effort to the common pot. A family can tax its members like any collective ruling body. Any family member can be forced to pay for collective benefits and projects with which he does not agree. This can be considered a potential cost for a family member, as evidenced by the sometimes objections of those who do not want to do a particular job.
Other costs associated with marriage include the risk of developing strong emotional ties to a group of individuals and the loss of opportunities to meet and interact with others. The cost of marrying one person can be seen as the loss of the opportunity to marry someone else who might have been the desired match but was not met in time. The list of costs goes on.
The benefits of marriage and family arise primarily from its ability to produce desired goods and services:
First, spouses have the ability to produce things that are impossible in a non-marital situation. This list may include children (at least legitimate ones), prestige and status, which may affect employment and circle of friends, respectability of the company, always available family sex and family life generally. Without a doubt, many of these goods can be had in a certain quality and quantity outside the family, but within the family they acquire certain properties and are therefore valuable to people.
Second, a family functioning as a separate household with more than one individual can produce goods and services much more efficiently than several households with one individual each. This is due to economies of scale.
2.3 Economic role of family and household
The economic role of the family in market relations is extremely complex. The family solves various problems of housekeeping, family business, labor force reproduction, ensuring the necessary level of consumer demand, creating investment potential, and others.
The socio-economic status of a family is an integral indicator that reflects in family relationships the features of the socio-political structure of the state, its legal foundations, the level of development of the economy, culture and social identity.
The importance of the family and its role in a market economy can be represented schematically.
Fig.2

The external contour formed by the arrows characterizes the movement of income and expenses of households and firms in monetary form. The inner contour shows the movement of goods and services and resources. The diagram (Fig. 2) indicates that the total amount of sales of firms is equal to the total amount of household income, the total amount of payments in the upper and lower parts of the external loop is the same. Moreover, equality of income and expenses applies to the economy as a whole, and not to an individual household. Households supply the market economy with factors of production (labor, capital, land, entrepreneurial abilities), supply them to the resource market, and use the money received for them (cash income) to purchase goods and services (consumer spending) to satisfy their needs. The family in this scheme is at the center of the market economy and determines, to one degree or another, the functioning of households and firms, markets for resources, goods and services. By joining the cycle of the market economy, the family fulfills the most different functions.

2.4 Family functions
The functions of the family are diverse. They affect all the most important sectors of society and largely determine the socio-economic processes occurring in it.
The functions of the family at all stages of the formation and functioning of “human capital” are interconnected. For example, a decrease in reproductive function reduces the labor potential of the family, weakens its production capabilities and can negatively affect the educational role (Fig. 3).
Fig.3
Let's take a closer look at reproductive function. According to modern Western economic theory, children are economic goods. Providing significant benefits to their parents and relatives, they are the result of a constantly evolving production process that includes the expenditure of resources. From an economic point of view, children represent a source of consumption and an object of investment.

Children - they are a special economic benefit because they bring significantly more emotion, risk and uncertainty than the purchase of any product. Parents cannot see the benefit (of the child) before purchasing.
The socialization function means the inclusion of a person in the social system through education, health services, raising children, culture, etc. with the help of the state. This is manifested in the variety of social services provided to the population in a market economy. Such services include: employment measures, unemployment insurance, assistance in obtaining education, social assistance, labor protection for women and minors, rental allowance, pension insurance, etc.
At the present stage of development of society, the importance of the reactionary function increases, since a person who works intensively, primarily mentally, should have more opportunities to restore efficiency and connect with the environment.
Housekeeping is a form of family productive activity. In a household, services and products are created to meet the needs of a given family.
Important functions of the family include:
1) organization of a family business,
2) individual family activities,

3) corporate forms of family participation in the market economy, etc.

2.5 Family budget
Creating normal conditions for the production of the human factor requires the formation and effective use family budget.

The family budget is divided into 2 parts:

1) income,
2) expenses.
Income includes wages, business income, income from property (rent, interest, dividends, etc.), government transfer payments (pensions, scholarships, benefits, free health services, education), income from other sources (inheritance ).

Family budget expenses consist of the following items:
1).social insurance;
2).taxes;
3).nutrition and flavoring goods;
4).clothes and shoes;
5). rent;
6). electricity;
7). furniture, Appliances;
8).transport;
9). manufactured goods;
10). education, entertainment;
eleven). leisure and travel;
12). donations and contributions to public organizations;
13). other expenses;
14). accumulation (savings).
Among the incomes of the population, the largest share in most families is wages and business income.

Conclusion
From all that has been said above, it is clear that households actively participate in the creation of the country's gross domestic product (GDP), the growth of which ensures the dynamics of the entire socio-economic system. From this point of view, households act not only as primary social, but, above all, as economic units of society. In a market economy, households are the main links in the formation of human capital. A category that is widely used in the modern world economic science and occupies one of the central places in the theory and practice of a market economy.
Yes, indeed, households have the most direct impact on the country’s economy, but still the influence of other subjects of market relations is also great and undeniable, and the competent interaction of these subjects with each other has a positive effect on the economy, and, consequently, on the standard of living of the population.
The work carried out led to the following conclusion: in a crisis, the household is the most stable and adaptable economic entity, actively realizing its defense mechanisms. In an environment of survival, household resources are mobilized to support the livelihoods of family members and, accordingly, all economic entities.

List of illustrations

Rice. 1. “Interaction of households with other market actors,” p.
Rice. 2. “The role of the family in a market economy,” p.
Rice. 3. “Family functions in the formation of human capital,” p.

List of used literature

1) Amosov A.I., Arkhipov A.I., Bolshakov A.K., Ilyin S.S. Economic theory, Course of fundamentals: Textbook, -M., PROSPECT, 2009, p. 608 s

2) Blackwell R.D., Miniard P.W., Angel D.S., Consumer Behavior, St. Petersburg, PETER, 2011, p. 317.

3) Vechkanov G.S., Economic theory, -M., 2009, p.448.

4) Vidyapina V.I., Zhuravleva G.P., Economic theory, Course of fundamentals: Textbook, -M., INFRA-M, 2010, 560С.

5) Galperin V.M., Microeconomics, Course of Fundamentals: Textbook, St. Petersburg, 2011, 349 pp.

6) Genkin B.M., Economics and sociology of labor, -M., NORMA, 2009, p. 416.

7) Grebnev L.S., Nureyev R.M., Economics, Course of Fundamentals: Textbook, -M., Vita-Press, 2009, 397 P.

8) Dornbusch R., Fischer S., Macroeconomics, -M., INFA-M, 2009,784С

9) Zherebin V.M., Romanov A.N., Household Economics, -M., UNITI, 2009, 231 P.

10) Iokhin V.Ya., Economic theory, introduction to the market and macroeconomic analysis, Course of fundamentals: Textbook, -M., INFA-M, 2009, 512 pp.

11) Kamaev V.D., Fundamentals of economic theory, Course of fundamentals: Textbook, -M., VLADOS, 2010, p. 592.

12) Livshits A.Ya., Nikulina I.N., Introduction to market economics, - M., 2010, 447 P.

13) Nureyev R.M., Course of microeconomics, Course of fundamentals: Textbook, -M., NORM, 2010, p. 561.

14) Prokofieva L.M., Demographic type of household and poverty assessment, -M., 2009, 436 P.

15) Sazhina M.A., Chibrikov G.G., Economic theory, -M., 2009, p.672.

16) Chepurina M.N., Economic theory, -K., ASA, 2010, 832 P.

17) Yanova V.V., Yanova E.A., Economic theory, -M., 2009, p.512.

18) http://www.gks.ru/

19) http://www.krugosvet.ru

Download:
You do not have access to download files from our server.

A family, or more generally a household, in a market economy is an economic unit consisting of one or more persons, which independently makes decisions, strives for maximum satisfaction of its needs, giving them certain preferences, is the owner of any factor of production (most often labor forces), ensures the production and reproduction of “human capital”,

A family is, as a rule, a small group of people consciously organized on the basis of family ties and common life, whose life activities are aimed at realizing the social, economic and spiritual needs of the individual, the family itself and society as a whole.

In any known society - ancient, primitive, developing or developed - the family has always remained the main force in the production and distribution of goods and services. It was especially important in production, in the care and education of children, in the production of food, protection from disease and other risks, as a guarantor of the reputation of its members. Moreover, parents often made self-sacrifice for the sake of their children and each other, which testifies to the heroic nature of men and women.

The family has changed radically over the centuries. The extensive kinship relationships in primitive society identified by anthropologists contrast with the nuclear (parents and children) family of modern society, where cousins barely know each other. The obligation to care for and support old parents is absent in most cases. modern society, where older people live alone or in nursing homes.

The family still occupies much less of a place in economic analysis than in real life, And although outstanding economists proclaimed the family the basis of economic life, neither in A. Marshall’s “Principles of Economics,” nor in J. Mill’s “Principles of Political Economy,” nor in A. Smith’s “Wealth of Nations,” nor in any other great work no significant attention is paid to family functioning.

An exception was T. Malthus’s model of population growth, which affected the relationship between fertility, family income, and marriageable age. T. Malthus argued that under less favorable economic circumstances, spouses usually marry later (or should do so). However, this important point remained unnoticed by economists for many years. A serious contribution to the study of the origin and development of the family was made by the work of F. Engels “The Origin of the Family, Private Property and the State” (1884),

Today, the family is considered to be the foundation on which public order. But it remains one of the least studied institutions, despite the fact that over the past 40 years economists have been trying to systematically analyze the economic behavior of the family and its members.

When studying the economics of the family and household, we will consider the family as a kind of “firm” that consumes resources, including labor within the family and goods on the market, produces goods to satisfy its needs, and incurs certain costs.

In real life, there are also single families, consisting of single (single) men and women who independently run their household separately.

The family is influenced by economic, legal, ideological, and moral relations. Traditionally, a family begins with marriage. Marriages can be said to take place in the “market”, which “destinates” men and women to each other or leaves them alone until better opportunities arise.

In all societies, spouses tend to come from families of similar backgrounds, religions, and are matched based on similarities in education, height, age, and many other variables. Destination theory in efficient markets explains positive matching by concomitance or “supercomplementarity” in the household between the attributes of husbands and wives. Effective purpose also partly explains the mutual altruism of wives and husbands: people “in love” probably marry because, at a separate level of formal analysis, love can be considered one of the sources of “co-occurrence.”

Marriage can be defined in many ways, but in Western economic literature, marriage is sometimes viewed as an enforceable contract between a man and a woman. Each party expressly or impliedly assumes certain obligations within the family, recognizing certain rights and privileges of the other and expressly or impliedly agreeing to the decision-making rules set out in the contract. Perhaps the main purpose of dating and engagement is actually to give couples a chance to work out the rules and develop a contract that everyone agrees to live by. (Not all couples, however, take advantage of this opportunity equally.) The contract, for example, may include provisions about children (and how many), who will do housework and mow the lawn, and what decisions will be made democratically by the entire family , and which ones are determined administratively. Although I would like to think that everything in a marriage should depend on love... Without the development of such provisions or with their uncertainty in the future, significant disagreements may arise that will end in divorce.

The role of the court in the divorce process is important and also has economic consequences. Court intervention guarantees the husband and wife certain ownership rights to family assets, tangible and intangible. Under these conditions, husband and wife are interested in investing their time and other resources in developing family assets and building strong material relationships. Family is investment projects in the sense of receiving returns over a number of years.

Costs and benefits of marriage

People's behavior regarding marriage is rational. This means, of course, that both sexes maximize their utilities when choosing a spouse. This also means that in the process of getting married, each individual must ask himself two fundamental questions:

♦ what are the overall costs and benefits of marriage compared to single life;

♦ How long and hard should he or she search for a suitable partner, given these costs and benefits?

In weighing the pros and cons, an individual must take into account several important considerations regarding the costs of marriage. The most important thing for many is the loss (cost) of independence. People are never completely free to do what they want: they must consider the impact of their actions on others. In a family, the effect of individual actions can be more direct and significant. Therefore, everyone needs to limit their own behavior to a greater extent than would be necessary if they lived separately.

The family usually agrees to make many decisions democratically and collectively. Family members are generally prepared for future costs, including the complexity and length of time required to reach a solution. This is because agreement is more difficult to achieve with a larger number of participants. For example, for married Seryozha, buy new car more difficult than for lonely Peter. All Peter needs when buying a car is to take into account his desires. Seryozha must take into account not only his preferences, but also the opinion of his wife. As a result, the process of buying a car for Serezha can be (and almost always is) longer. If husband and wife had identical preferences; which, no doubt, is extremely rare in marriage, the costs of their decision would be the same as Peter's. Thanks to the same preferences, they could both be sure that whatever one bought, the other would like it.

Because of these costs, spouses often agree to have most administrative decisions made by one party. For example, one is given the right to handle family dinners without consulting other family members. Another may buy children's clothes, etc. Each party has the right to make decisions without consulting the others, and saving on costs can lead to a lot of profit, more than paying for the wrong decisions. Sharing decision-making power within the family makes the family economy efficient.

The family is involved in the production of goods and services that are shared among all its members. These things are available in the same quantity and quality to everyone. Common goods -■ take the example of a car - may not completely suit the tastes of any one individual, but they are goods that everyone agrees to buy. In such cases, and there are many of them, the individual has to bear the costs of not receiving the goods in quantity and quality that most fully satisfies his preferences.

Because family decisions are made democratically, family members should have a say in how the burden of producing goods is shared by determining who contributes income, time, or effort to the common pot. A family can tax its members like any collective ruling body. Any family member can be forced to pay for collective benefits and projects with which he does not agree. This can be considered a potential cost for a family member, as evidenced by the sometimes objections of those who do not want to do a particular job.

Other costs associated with marriage include the risk of developing strong emotional ties to a group of individuals and the loss of opportunities to meet and socialize with others. The costs of marrying one person can be thought of as the loss of the opportunity to marry someone else who might be the desired match. but didn't meet on time. The list of costs goes on.

According to Marxist theory, costs in the family as the main consumer link of the economic system can be characterized as consumption costs (i.e. costs in the sphere of consumption). These costs can be of a productive nature (cooking, sewing clothes, home repairs, etc.), so they are essentially production costs in the sphere of consumption. In addition to the net costs of consumption when using housing, clothing, etc., the family incurs costs for the purchase of goods and services, which are already costs of circulation in the sphere of consumption. Consequently, costs in the family economy are diverse not only in type, but also in economic content.

The benefits of marriage and family arise primarily from its ability to produce desired goods and services.

First --■ spouses have the ability to produce things that are impossible in a non-marital situation. This list may include children (at least legitimate ones), prestige and status, which can influence the employment and quality of friends, the solidity of the company, the always available family sex and family life in general. Without a doubt, many of these benefits can be had in a certain quality and quantity outside the family; we only believe that within the family they acquire certain properties and are therefore valuable to people (although some of them can be considered costs).

Second, ■ a family functioning as a separate household with more than one individual can produce goods and services much more efficiently than several households with one individual each. This is due to economies of scale.

Many goods and services for family members in the home are public goods: they benefit everyone and do not decrease in quantity or quality when additional consumers are added (for example, decorative items for the home, beautiful picture on the wall, etc.), people living under the same roof do not need to produce common goods for everyone for themselves, so it is possible to improve the quality of existing goods or direct resources to other purposes.

The efficiency of home production can be greater with specialization and exchange between partners. The parties can take advantage of their comparative efficiency. Let us assume for simplicity that the household produces only two services - cleaning the house and mowing the lawn (Table 8.1).

Table 8.1

Spouses	House cleaning, min	Lawn mowing, min
Wife	60
Husband	100	300

Table 8.1 shows that if these people lived separately, they would need a total of 560 minutes to complete this work. When they live together and each cleans half the house and mows half the lawn, it takes 280 minutes (80 minutes for cleaning the house and 200 minutes for the lawn). However, both have the opportunity to specialize: one cleans the house, the other mows the lawn. Since each will do something for the other, it is in a sense an exchange. Every time the wife cleans the house, she gives up 3/5 of mowing the lawn: if she spends 60 minutes cleaning the house, then at that time she can no longer mow the lawn. Therefore, we say that the wife could mow 3/5 of the lawn in this time. On the other hand, every time my husband cleans the house, he only gives up mowing 1/3 of the lawn. Thus, for the wife, cleaning the house will be more expensive in terms of uncut lawn. If we want to minimize production costs, then the wife should mow the lawn and the husband should clean the house. With this division, the total time will be 200 minutes. If the wife cleans the house and the husband mows the lawn, it will take 360 minutes.

We can conclude: under a common roof, the costs of producing goods are minimized if the spouses specialize effectively. Note also that in our example the wife is more productive in providing both services. By specializing, husband and wife can avoid the costs associated with developing the same skills. Everyone can focus on limited household tasks, improving their performance. Husband and wife are interested in maximizing household production or minimizing its costs, which is the same thing.

If a family has to decide how to allocate its members' time between outside work and work at home, less expensive outside labor should be used to minimize costs. The cost of cleaning a house is equal to the cost of materials and the cost of the individual time of the family member outside the family doing the cleaning. Let's say it takes 2 hours to clean. The salary that a wife can earn outside the home is $6 per hour, the husband's salary is $10 per hour. It follows that it is cheaper for your wife to do the cleaning. If my husband cleans the house, it will cost $8 more.

It is known that women tend to earn fewer men due to discrimination and less productivity. Individual households have to put up with this, so many responsibilities in the family are transferred to wives (child care, etc.). In this case, child care costs are minimized and household output is maximized.

It should be noted that the employment rate of women is last decades is growing, and the level of male employment in social production is decreasing. There are many reasons for this, including changes in society's attitude towards women's employment.

Responsibilities are typically delegated to family members, and everyone in the family is dependent on others to fulfill the terms of the contract. The well-being of the family will decrease if one of the family members shirks their responsibilities. Avoiding household responsibilities causes harm to others.

Almost all contracts require monitoring of performance. A marriage contract is no exception here, especially in legal and emotionally. The feeling of love reduces the costs for each spouse to verify compliance with the marriage contract. Where there is no love, it is more likely to shirk family responsibilities, which diverts family resources to “supervise” family members. Here love takes on an economic meaning.

An effective marriage is one in which two people love and are similar to each other in values and preferences. This conclusion follows from the position of economic theory about the family as a production unit. The stronger the love and the closer the couple’s views, the closer the marriage is to ideal. However, in the real world, an individual must often choose between a person less loved, but similar in many ways, and a loved one, but completely different.

Although love increases the efficiency of a household, marriages are known in which the parties loved each other dearly, but separated because the differences in taste were so great that love could not overcome them. On the other hand, marriages without Great love persist when the partners' tastes are very close, the spouses find their relationship advantageous compared to other possibilities.

Economic role of family and household

The economic role of the family in market relations is extremely complex. The family solves a variety of problems of housekeeping, family business, labor force reproduction, ensuring the necessary level of consumer demand, creating investment potential, and others.

In different historical eras, depending on the nature of social relations, the family also changed: its place and role, size and stability, position in society, its socio-economic status.

The socio-economic status of a family is an integral indicator that reflects in family relationships the features of the socio-political structure of the state, its legal foundations, the level of development of the economy, culture and social identity.

The importance of the family, its role in a market economy can be represented schematically (Fig. 8.2).

Rice. 8.2. The role of the family in a market economy

Family functions

The functions of the family are diverse. They affect all the most important sectors of society and largely determine the socio-economic processes occurring in it.

In a market economy, the family is the main link in the formation and accumulation of human capital.

The functions of the family at all stages of the formation and functioning of “human capital” are interconnected. For example, a decrease in reproductive function reduces the labor potential of the family, weakens its production capabilities and can negatively affect the educational role.

All functions are aimed at accumulating and recovering costs associated with the creation of “human capital” and the development of entrepreneurial potential (Fig. 8.3).

Rice. 8.3. Functions of the family in the formation of human capital

Let's take a closer look at reproductive function. According to modern Western economic theory, children are economic goods. Providing significant benefits to their parents and relatives, they are the result of a constantly evolving production process that includes the expenditure of resources. From an economic point of view, children represent a source of consumption and an object of investment.

Parents receive good company in their children, which provides benefits that are different from those from other products. You can talk with children, walk with them, they can be partners in table tennis or checkers. Their existence gives parents some hope of not being lonely in old age. Children can please their parents with feelings of respect, need, and adoration.

Rightly or wrongly, children are used to realize the goals of their parents. Spouses' motivations for having children may include a genuine need to contribute to society, a desire to discover the unknown, or to test the hypothesis that they are better than others at raising children. In all respects, children are consumer goods.

Children were once in history (and this is still true in the undeveloped countries of the world) a means of providing parents with their pension in old age. While the children were growing up, parents contributed to their pension fund by feeding and clothing their children; in later years, children took care of their parents if they were unable to provide for themselves.

This type of home insurance organization has not completely disappeared. However, today people in developed countries rely more on cash-based, financially sound pension plans for income in old age.

Last but not least, children can be an important source of labor, especially in families living on farms or in places where child labor is cheaper than mechanization. When children are old enough to work, parents reap the benefits of their investment. The benefits of having children and the aggregate level of parental satisfaction determine parents' demand for children. This demand for children, or more precisely, for “children's services,” can influence the total number of children or the quality of children born and raised.

The costs of raising children include the family's costs of birth, food, clothing, shelter, education, entertainment, medical expenses, insurance, transportation, etc. Other costs that are often overlooked are the emotional costs and parental time spent raising children. Estimating the costs of children is a difficult problem. The actual costs of raising children will depend on how much parents are willing to spend, and all costs will vary depending on the economic status and location of the parents. Taking these problems into account, an assessment of the costs typical for the United States in the late 80s was carried out. XX century These include the cost of birth (hospital and doctor's fees are approximately $3,000), the cost of raising children under 18 years of age ($65,000 - $300 per month), the cost of education at a public college or university ($24,000 - $6,000). , per year) and alternative parental time devoted to raising children ($374,400 - $20 per hour, 20 hours per week for 18 years). The total cost of $466,400 is likely significantly higher than expected, primarily due to the inclusion of the opportunity cost of parents' time.

The total costs of children will vary significantly depending on the parents' opportunity wages. The cost of a child for a person with a low income can be significantly lower. Assuming all costs except wages remain the same, then the costs of a poor person's child earning $5 an hour would fall to $185,600.

The total costs may be lower than in this calculation because many of them will be spread over a number of years. A thousand dollars spent a few years ago is worth less than a thousand dollars spent today. The reason is that a thousand dollars spent today “earns” interest over a period of years if it is deposited in an account or invested in an interest-bearing account. securities. Of course, even after discounting the cost of future expenses, a first child is the most expensive piece of “good” that people are likely to buy in their lifetime! In discussions about the family, it is noteworthy that many of the costs associated with the first child are constant, that is, they do not change with the birth of subsequent children. This means that the marginal cost of the second child is usually less than the marginal cost of the first.

Children are a special economic benefit because they bring much more emotion, risk and uncertainty than the purchase of any product. Parents cannot see the benefit (of the child) before purchasing; Indeed, their task is to produce a child “from scratch.” A child emerges from birth with his own desires, which increases the element of uncertainty. In the case of a commodity, the buyer can later sell it, recouping at least part of his investment. In modern society, doing the same with children is not accepted. Thus, the decision to have a child is more difficult than other family decisions, and there is more room for error in the production of children than in the production of anything else. However, this does not mean that parents will not try to approach the problem from a rational position.

Parents weigh the costs and benefits of making decisions about their children. In this case, the demand function for children will be downward sloping. The costs of children will affect the birth rate. More children - lower costs or prices. Parents, in addition, rationally balance the number of children with their quality.

Rice. 8.4. Total market demand for children

Rice. 8.5. Declining demand for children

Figure 8.4 illustrates the aggregate market demand for children (D). Q 1 - children who will be born and raised impulsively, that is, due to the irrational behavior of some parents. However, the number of children also depends on supply, that is, on the costs of producing children. If, for simplicity, the position of children is assumed to be horizontal (*?), i.e., marginal costs are constant and equal to P jt, the total number of children will be equal to Q 2,. Q 1 is the result of “accidents”, then Q 1 -Q 2 is the result of “cost-benefit” calculations.

Interestingly enough, many accidental births could be planned for more late date. In this case, the demand curve shifts to the left (the reasoning does not change).

If the demand for children falls, an economist might predict a decline in the number of children available. This situation is shown in Fig. 8.5 by a shift in demand from D j to D r The number of children will fall from Q 2 to Q r The number of accidentally conceived children will remain Q f However, the number of rationally determined children decreases, causing a decrease in demand overall.

This change in demand may be the result of an external drop in “taste” for children. It may also result from a decline in the relative price of other goods produced and consumed at home. If the latter occurs, rational couples will seek to reallocate their resources from children to cheap goods. The increase in the relative cheapness of goods such as cars and all types of entertainment, which can be substitutes for children, explains the fall in the birth rate.

In general, the location of the demand curve depends on the relative benefits of children and family resources. Children raised on farms have more opportunities to contribute to family income than urban children. One explanation may be the child labor law, which allows child labor on farms and restricts it in industry.

For this reason alone, economists can expect greater benefits from children and a greater demand for them in farm families than in urban families (D 2) (Figure 8.5). As a result, farming families are larger. If there is migration from villages to cities, as in recent decades in developed countries, we should expect a fall in the birth rate and a decrease in population growth.

Over time, with a decrease in the price of mechanical equipment, all other things being equal, the number of families of farmers may decrease if the equipment is able to replace the labor of children. Cheaper farm equipment will encourage families to buy it and use less labor, meaning have fewer children.

In addition, preferences may shift from quantity to quality, causing a shift in the demand curve based on quantity. Parents are always faced with the choice between allocating resources to more children and increasing attention to existing children.

According to our model, everything that reduces the cost of children shifts the supply curve down and increases the number of children. In this case, in Fig. 8.6, supply moves from S 1 to S 2, and the number of children - from Q 2 to Q r Reason growth is that the costs of additional children Q 2 and Q 3 exceed the benefits indicated by the demand curve between Q 2 and Q r When the supply curve shifts downward, the benefits of additional children begin to exceed the costs of them. Thus, it becomes more rational to transfer more resources to the production of children.

Rice. 8.6. Demand curve with decreasing costs for children

Such a change may be a consequence of an increase in the efficiency of raising children, making the entire process less expensive, a decrease in market prices for the resources needed to produce children, or the result of changes in such external factors as government policy, inflation, wages, the level of education of parents, etc.

Parental education levels may influence children's production in different ways.

First, he can change the relative preferences of parents, offering other things that are more valuable to them instead of children.

Second, education can increase parents' alternative wages and create a positive income effect and a negative cost effect.

Third ~~ education can increase efficiency, which will raise the quality of children. At least one empirical study supports this idea. Even with a higher alternative wage, greater efficiency allows educated person get a child's quality unit at a lower cost. For example, a parent with primary education needs 2 hours to teach his child something useful (quality). His salary on the market is $4 per hour. The total cost is $8. On the other hand, if you take a more educated parent earning $20 per hour to achieve the same result with their child in 15 minutes, the cost will be only $5. Other things being equal, we can expect more demand for quality children from more educated parents.

Fourth, the effect of parental education can manifest itself in a reduction in the number of unwanted children. Parents are altruistic (selfless) towards their children. Altruism means that the utility of the parents depends on the utility of the children:

U = U(Z . U 1 ... U),

where Z d -■ consumption of parents, and O, (r = 1, ..., N) is the utility of the i-th child.

The socialization function means the inclusion of a person in the social system through education, healthcare services, raising children, culture, etc. with the help of the state. This is manifested in the variety of social services provided to the population in a market economy. These services include: employment measures, unemployment insurance, assistance in obtaining education, social assistance, labor protection for women and minors, child benefits, rental subsidies, pension insurance, social housing construction, accident insurance.

At the present stage of development of society, the importance of the recreational function is increasing, since a person who works intensively, primarily mentally, should have more opportunities to restore efficiency and connect with the environment. The word “recreation” is of Latin origin and means rest, restoration of human strength expended in the process of labor. An analysis of family expenses for leisure, travel, and free time indicates their growth and, accordingly, a change in the individual’s preferences.

Housekeeping is a form of family productive activity. In a household, services and products are created to meet the needs of a given family. Systematic production of products in a household for sale or sale of services on the market characterizes a family engaged in self-employment, and the production of agricultural products is a personal subsidiary plot with a commodity focus.

Housekeeping still consumes a significant portion of family members' time budget. Household work, a significant proportion of which is carried out by women, is very labor-intensive and involves considerable physical effort. According to special surveys, hanging up laundry costs more than working on a tractor for the same amount of time, wiping windows costs more than driving a taxi, and ironing clothes in an hour consumes as many calories as a bricklayer uses in the same period. All this determines the importance of developing a system of consumer services and household mechanization.

A special area of productive work in the family, which absorbs a significant part of the time budget, is cooking. According to surveys conducted in Russia, during the week it takes men 5 hours 17 minutes to provide food at home (buying groceries, cooking, washing dishes), women - 16 hours 22 minutes, i.e., 36 and 57% of the total time, respectively. for housekeeping.

Important functions of the family include: organization of family business, individual activities of family members, corporate forms of family participation in the market economy, etc.

Family budget

Creating normal conditions for the production of the human factor requires the formation and effective use of a family budget.

The family budget is divided into two parts: income and expenses.

Revenues include:

♦ wages;

♦ business income;

♦ income from property (rent, interest, lease payments, dividends);

♦ government transfer payments (pensions, scholarships, benefits, free services in the field of healthcare, education);

♦ income from other sources (inheritance, etc.).

Family budget expenses consist of the following items:

♦ social insurance;

♦ taxes;

♦ food and flavoring products;

♦ clothes and shoes;

♦ rent;

♦ electricity;

♦ furniture, household appliances;

♦ transport;

♦ industrial goods;

♦ education, entertainment;

♦ leisure, travel;

♦ voluntary donations and contributions to public organizations;

♦ other expenses;

♦ accumulation (savings).

Among the income of the population, the largest share in most families is wages and business income, although they vary enormously among individual families. As a rule, it is these items of income that determine the well-being of the family. But not only.

Income from property is essential. According to Professor A. Babo of the University of Paris, in the early 90s of the 20th century. The total amount of property owned by French families is estimated at 15-16 trillion francs, which is approximately 4 times the national income. This indicates quite high level welfare of French families. There is an average of about 300 thousand francs of property per capita. In the dynamics of the structure of property of families in developed countries, the prevailing trend is towards an increase in the share of financial components of property (cash, securities, savings deposits, savings in life insurance funds, etc.).

Currently, the process of transferring property by inheritance plays a smaller role in the formation of initial property than was previously noted. This means that young families must strive to increase their well-being through their own efforts.

Among expenses, food costs are of primary importance, which in our country in families with income below the minimum level range from 60 to 90%, in families with average income - 42%, in high-income families -■ 28-29%. In the USA · - 25.4%; V Western Europe- 20%; Japan - 25-30%. While in highly developed countries there is a tendency to reduce the share of this type of expenditure, in our country the opposite trend is at work.

All about car tuning

Households as a subject of market relations. Household (Household) is a Household in a market economic system

Household as a subject of market relations