The Modified Two-Factor Model of the Profitable Behavior of Households

Abstract

The main aim of the publication is clarifying of the influence of the motivational-stimulating factor of forming the profitable behavior of households for its detailizing, taking attention of the characteristic features of specific households by adjusting the form and parameters of dynamic models. A logarithmic form of the quantitative-qualitative evaluation of the motivational-stimulating factor is proposed, based on the economic interpretation of the psycho-physiological Weber-Fechner’s law. The built motivation function allows coordinating of endogenous and exogenous features by means of setting the level of satisfaction with incomes ensuring the minimum needs of the household. Comparison of its dynamics depending on the level of incomes with dynamics if function of motivation, which value is determined by a linear deviation between the full «satisfaction» with incomes and the actual in percents, displayed the existence of plots with ultra high motivation that correspond to lower than the minimum that should be regarded as a manifestation of formation of the economic behaviour in crisis. The built model is characterized by limited rationality and corresponds to the theory of institutionalism.

Keywords

• economic behavior
• household
• motivation
• institutional characteristics
• income
• human capital