kulutulu

Kulutulu is a theoretical economic indicator used in macroeconomics to describe the share of disposable income that households allocate to consumption in a given economy or population. The term is derived from Finnish kulutus (consumption) and tulo (income) and is often presented as the Finnish analogue to the concept known in English as the average propensity to consume (APC).

It is calculated as C/Y, where C denotes total consumption expenditures by households and Y denotes disposable income. The result is typically expressed as a decimal or percentage and can be computed for specific time periods, regions, or demographic groups using national accounts data and household budget surveys. Analysts may adjust for inflation or seasonal variation to compare across periods.

A high kulutulu indicates a larger share of income is spent on consumption rather than saved, suggesting higher current demand relative to income. A low kulutulu suggests higher saving or lower consumption, with implications for short-term aggregate demand and policy effectiveness in stimulating growth.

Variants may use different income bases (disposable income vs. pretax income) or cover only consumer services and goods from households, excluding government services or non-market activities. Data limitations, reporting lags, and cross-country definitional differences can affect comparability. It is thus used as one of several indicators rather than a stand-alone measure of welfare.

An illustrative example: with disposable income of 40,000 and consumption of 30,000, kulutulu equals 0.75 or 75%. Related concepts include the average propensity to consume, saving rate, and marginal propensity to consume.