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This study aims to analyze the influence of private consumption, private investment, and foreign direct investment on the economic growth of Indonesia using the cash flow accounting approach. A quantitative approach was employed, utilizing secondary data from various official sources. The analysis indicates that private consumption significantly affects economic growth, whereas private investment shows no significant influence. However, foreign direct investment has a proven significant positive impact on Indonesia's economic growth. These findings underscore the importance of private consumption and foreign investment in driving national economic growth, while highlighting the need for a better understanding of the factors influencing private investment to enhance its contribution to economic growth. [ABSTRACT FROM AUTHOR]

This study examined the impact of public debt on private consumption in 26 European Organization for Economic Co-operation and Development (OECD) member countries from 2011 to 2020. Analyzing data from OECD, World Bank, and International Monetary Fund reports, we employed various statistical methods, including correlation analysis, linear regression, fixed effect, random effect, and the Generalized Method of Moments model via the Arellano-Bond estimation approach. Our findings indicated that public debt, foreign direct investments, inflation, and gross domestic product (GDP) growth positively influence private consumption, while gross fixed capital formation and exports of goods and services have a negative impact. The study underscores the need for careful consideration of the repercussions of public debt on citizens' daily lives, especially in terms of private consumption, emphasizing the crucial need for policymakers to consider the delicate balance between public debt management and sustainable economic growth in OECD countries for shaping effective economic policies that foster responsible debt management to support long-term economic development.

This study examined the impact of public debt on private consumption in 26 European Organization for Economic Co-operation and Development (OECD) member countries from 2011 to 2020. Analyzing data from OECD, World Bank, and International Monetary Fund reports, we employed various statistical methods, including correlation analysis, linear regression, fixed effect, random effect, and the Generalized Method of Moments model via the Arellano-Bond estimation approach. Our findings indicated that public debt, foreign direct investments, inflation, and gross domestic product (GDP) growth positively influence private consumption, while gross fixed capital formation and exports of goods and services have a negative impact. The study underscores the need for careful consideration of the repercussions of public debt on citizens' daily lives, especially in terms of private consumption, emphasizing the crucial need for policymakers to consider the delicate balance between public debt management and sustainable economic growth in OECD countries for shaping effective economic policies that foster responsible debt management to support long-term economic development. [ABSTRACT FROM AUTHOR]

This study empirically tests whether the loss aversion or hand-to-mouth theories of consumption behaviour is present in Fiji. The loss aversion hypothesis implies that consumers would maintain their consumption when income falls. To estimate this model, we apply the nonlinear autoregressive distributed lag model with annual data from 1981 to 2019. Our findings are in contrast to the predictions of the loss aversion hypothesis and support the hand-to-mouth hypothesis in Fiji. The results are robust to alternative measures of liquidity, and a sample that includes the COVID-19 pandemic. We contribute to the literature by providing evidence of nonlinearity's in the consumption-income association. The findings are useful for policymakers in developing countries for policies on economic growth and stabilization. [ABSTRACT FROM AUTHOR]

Self-referential, meta or self-aware advertising uses irony and cynicism to overtly critique and challenge conventional advertising strategies. While increasingly multiple brands are using self-referential advertising campaigns to implement innovative advertising strategies, a limited amount of research has been conducted on the effects of self-referential advertising on consumers’ evaluative responses. This study aimed to identify a link between self-referential ads and the consumers’ sense of self-presentation, mainly the conflict between the ideal self and the real self, and how this, in turn, affects their attitude toward the brand in the subject, further affecting purchase intention and brand perception. A quantitative structured study was conducted in a group of 326 18–35-year-old people, comprising Millennial and Generation Z consumers, using voluntary sampling through links to Google Forms distributed online on various platforms. Findings showed a significant positive correlation between self-referential ads, brand perception, and consumers’ brand attitude (r = 0.777, 0.712). Besides, in the mediation analysis, each of the four regression models establishes a correlation among the three variables. However, significance is not found in the mediating role of consumers’ real selves between self-referential advertising and brand attitude, though consumption patterns mediate consumer acceptance of self-referential advertising. The findings gave product/brand managers and marketing professionals a strategic direction on the importance of using self-referential forms of advertising in congruence with the product life cycle and brand positioning. It also helps to understand the importance of consumption patterns in creating advertising appeals.

In this paper we contribute to the long literature on how fiscal policy affects the real economy. In particular, we focus on how government consumption affects private consumption for a pool of European economies. We estimate panel vector error correction models between the two consumption variables for the EU 28 + Norway and Switzerland, for the two periods before and after 2008. The results show that government consumption affects private consumption differently in the periods before and after 2008. This means an increase in government consumption could have a positive impact on private consumption. [ABSTRACT FROM AUTHOR]

Real Money Balance indicates the impact of the changes in real money stock on real variables of the economy. This paper estimates the real money balance effects on private consumption and aggregate demand by using a structural estimation approach. The data that we use is Iran’s annual data and runs from 1990 through 2019. The variables are real private consumption expenditures, M2 money stock, CPI, GDP, population, central bank’s one-year interest rate, the arithmetic mean of growth rates of the price of durable commodities, the exchange rate, the price of gold, and the price of one square meter of land. The estimation shows that the parameter that indicates the importance of the real money balance effect on private consumption is significantly different from zero (0.952 and 0.814 from two different normalization estimations). In addition, the amount of real money balance effect on aggregate demand equals 1.691 which is significantly different from zero. These results indicate the importance of real money balance effects on private consumption and aggregate demand in Iran’s economy. This means that real money influences all macroeconomic variables and has an important role in monetary transaction mechanisms. This result indicates the importance of monetary policy and shows why we cannot ignore money’s role in the monetary transaction mechanism. It also illustrates the negative impacts of price rise in real variables on economics by decreasing real money balance.

Consumption is a crucial determinant of a healthy economy, and its direct linkage with income and employment theories necessitates its study, particularly in the context of private consumption as a global issue. A range of macroeconomic and microeconomic indicators impact private consumption, making it vital to identify the factors that affect consumption in Pakistan. This study aims to achieve this by examining the influence of government spending, income, wealth, and real deposit rate, as well as inflation and population as control variables, on private consumption from 1972 to 2021. The Johansen cointegration technique and the Error correction model (ECM) are utilized to test the long-run and short-run impact, respectively. The findings demonstrate that private consumption has a significant and long-run association with government spending, income, and population. In the short run, real interest rate, inflation, and population have a significant impact on private consumption. No significant relationship between wealth and private consumption is observed in both the short and long run. These results offer useful guidance to policymakers in Pakistan, indicating the need to increase spending on various development projects, such as human capital development, industrial development, increased employment opportunities, and poverty reduction plans. Such initiatives would stimulate the economy and promote private consumption. Additionally, the implications of interest rates and wealth supply provide guidelines for monetary policy implications, rendering the study a unique overview of private consumption in Pakistan. [ABSTRACT FROM AUTHOR]

This study will investigate the relationship between public debt and private consumption. In the last decade, public debt and its impact on the economy has become a very current and vital topic for many scholars in developed and developing countries. Therefore, the primary purpose of this study is to show the effect of public debt on the growth of private consumption in developing countries, where about 20 countries will be analyzed. The source of data for the realization of this study will be based on international financial institutions such as World Bank, International Monetary Fund, and European Bank for Reconstruction and Development, while the analysis period includes data from 1995 to 2020. Drafting and the research will be organized by applying a diverse methodology, which includes advanced econometric methods and techniques such as OLS, Fixed Effects, Random Effects, and GMM. The main findings of this study show a non-linear relationship between public debt and private consumption in developing European countries. More specifically, the increase in public debt negatively affects private consumption expenditures. The results provided through this study present data on developing European countries' policies about the ratio of public debt to private consumption. [ABSTRACT FROM AUTHOR]

The world's first epicentre of Covid-19 that contained the virus early and recovered quickly, Wuhan, the capital city of China's Hubei province, offers a rare case for examining the effective but unbalanced role of the Chinese state in recovering a post-Covid city against a continued zero-Covid policy. Due to institutional inertia in policy-making, Wuhan has experienced a two-track recovery of (i) rapid GDP growth from infrastructure investment fuelled by government stimuli and large state-owned enterprises, and (ii) a weak recovery for small private businesses and grassroots consumption. Combining analyses of city-level data and survey/interview information, this paper examines the unbalanced role of the Chinese state in producing Wuhan's uneven two-track economic recovery and its implications for recalibrating the roles of the central versus local governments and empowering the latter to rebalance from production to consumption and to improve livelihood. [ABSTRACT FROM AUTHOR]

This study examines the impact of fiscal policy and private consumption on economic growth among the Economic Community of West African States (ECOWAS) spanning from 1988 to 2017 using the Panel Pool Mean Group. The results depicted that the government’s recurrent expenditure for growth was inversely but significant to economic growth, while capital expenditure was positively and statistically significant to explain economic growth in Nigeria. It can be seen that capital expenditure is vital for economic growth. Besides, private consumption’s negative effect on economic growth was a disconnection between economic output and private consumption. The results further showed that tax revenues in ECOWAS countries had a positive and significant influence on economic growth. Therefore, the study recommends re-visit government policy(ies) channeling government spending to increase ECOWAS output rates and spur regional economic growth.

This paper analyzes the relationship between final consumption and government spending, using the correlation and linear regression model. The objective of the research is whether government expenditures are complementary, substitute, or not related to private consumption to give positive effects on the economy. Methodology, quantitative secondary data were obtained from the World Bank, for five countries and processed with SPSS, 21. The empirical analysis was verified through, Bivariate and Partial correlation and normality test. The Result, first, shows that government spending complements and replaces final consumption. Second, it is also confirmed that even when interacting with other variables, the complementary effect of final consumption is not eliminated despite the shocks coming from government spending. Third, by adding other variables to the model, the issue of complementarity and substitutability of the two main variables is not lost. As a result, findings, confirm that private consumption (InCt) and government spending (InGt), Gross Savings (GS), and per capita income (GDPpc), are in statistically significant and positive relationships with each other. The novelty of the paper is, government expenditures cause an increase in private consumption is to high value, showing the complementary effect of government expenditures on private consumption. Based on health expenditures, education, public order, internet provided by the state have increased the demand of families for these services, causing an increase in the share of services provided by the private sector. JEL Classification: E21; H5; E2; R0. Doi: 10.28991/esj-2021-01292 Full Text: PDF

We explored how consumer attitudes toward service delivery types (self-service technology vs. face-to-face) differ in a private consumption context depending on the brand personality (underdog brand vs. top-dog brand). Using banking service (Study 1) and hotel service (Study 2) scenarios, we empirically investigated the interaction effects between service delivery types and brand personalities on consumer attitudes. The results indicate that for humanized underdog brands consumers showed a more positive attitude toward self-service technologies than toward face-to-face services. However, for the top-dog brands there were no significant moderation effects. Thus, when managers in the marketing field are planning to regulate new directions for their service policy, they need to be very cautious by considering both consumption context and brand personality. We have theoretically and practically expanded the existing literature on service delivery by focusing on private consumption services. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper makes an empirical evaluation of the relationship between financialisation and the Portuguese private consumption by performing a time series econometric analysis from the first quarter of 1996 to the third quarter of 2019. Framed within the post-Keynesian literature, financialisation has two contradictory effects on private consumption. The first one corresponds to the fall in the households’ labour income, which favours a deceleration of private consumption. The second one corresponds to the increase of households’ debt and the increase of households’ financial and housing wealth, which favours an acceleration of private consumption. The global net effect of financialisation tends to be positive because the beneficial wealth effect suppresses the harmful income effect. We estimated a private consumption equation that includes four control variables (unemployment rate, inflation rate, short-term interest rate and long-term interest rate) and three variables linked to financialisation (labour income, net financial wealth and housing wealth). Our results confirm that labour income, net financial wealth and housing wealth are positive determinants of Portuguese private consumption. Our results also show that financialisation has represented an important driver of Portuguese private consumption, particularly due to the beneficial effects of net financial wealth.

European Consumer Confidence Indicator (CCI) is conceptualized as a measure of prevailing consumer sentiment and a coincident indicator of private consumption. At the beginning of 2019, the European Commission (EC) changed the CCI's methodology after more than 18 years of use, opening room for an evaluation. We construct an extensive set of more than 86 million alternatives to European CCI and provide detailed performance analysis focusing on correlations, residuals' descriptive diagnostics, and success in tracking consumption's direction of change. We propose inspecting the contribution of all survey questions (both 12 monthly and 3 quarterly), alternative monthly to quarterly transformations, alternative approaches to standardization, and allowing survey balances to enter the computation formula both with a positive and a negative sign. Almost all results imply that EC's methodological change to new official CCI relies on stronger theoretical foundations and enhances the predictive power of CCI. The correlations with private consumption are higher than before while the success rate in tracking the direction of change is similar as before. However, the new CCI can be even more precise in capturing the direction of change up to 20–30%. Correlation values imply a possible improvement of up to 9% from the new CCI and suggest guidelines for further improvements. Expected spending on durable goods is the most relevant survey question for constructing CCI. [ABSTRACT FROM AUTHOR]

Private consumption is crowded out either because consumers may feel poorer as a result of negative wealth effect or they may be induced to postpone consumption in response to deficit-financed government spending (see for instance, [6] ([6]) and [23] ([23])). For instance, if this study reveals that government expenditures are substitutes to private consumption, it would inform policymakers that increase in government expenditure would hurt the private consumption and deteriorate the standard of living which they strive to improve. Keywords: Government consumption; private consumption; substitutability; fiscal policy; Edgeworth-Pareto EN Government consumption private consumption substitutability fiscal policy Edgeworth-Pareto 1 21 21 02/14/22 20210901 NES 210901 1. General government final consumption expenditure ( HT ht ) includes all government current expenditures on goods and services (including compensation of employees). [Extracted from the article]

We attempted to scrutinize the efficacy of fiscal policy tools on key macroeconomic variables in case of India. Applying an asymmetric cointegration framework, the impact of public spending hike on output growth is significantly favourable and that of the decrease in it is insignificant. Similarly, effect of tax hikes is more pronouncing than tax cuts. Comparatively, results report more effectiveness of spending hikes than the tax cuts to avoid an economic downturn and tax hikes than spending cuts to cool down a heating economy. Private consumption mimics response of output growth, whereas response of private investment follows the substitutability hypothesis. [ABSTRACT FROM AUTHOR]

Economic growth has been analysed in depth by many studies, especially in recent years when all economic agents, including governments, have made every effort to promote the return of national economies on a growth trend. At the level of the European Union (EU) the economic growth policy is mainly based on job creation, efficient use of financial resources, investment stimulation and innovation and technology promotion. In this article we have tried to identify the main factors that influence the evolution of the real GDP and the GDP per capita in the EU member states through a data panel econometric analysis. The results showed that at the EU level the economic growth is significantly influenced by private consumption, employment rate and net trade. Investments also have a positive effect, but obviously they need to be further supported and stimulated through effective policies. At the same time, tourism has a favorable impact on the income per capita through occupancy and the number of accommodations within this economic branch.

The article aims at assessing consumer potential of the East Asian region in the context of diversification of economic growth sources and its transition to consumption-led economic growth model. Favorable social, demographic and economic trends, as well as demand-stimulating policies, implemented by governments and monetary authorities of the most of regional economies, entail a rapid increase in the private consumption contribution to economic growth, lead to a gradual transformation of the commodity structure of consumption, and import demand, which opens up new opportunities for exporters from the third countries, including Russia. The analysis made it possible to make a number of practical conclusions. Given consumer potential and mutual trade dynamics, China and Vietnam, to a lesser extent Malaysia, are of the greatest interest to Russia, while Thailand, Indonesia and the Philippines’ potential can be implemented in medium-term perspective (5-10 years). Russian mining, agricultural and heavy engineering industries (mainly, aircraft, space and power engineering) can become the key beneficiaries of the growing consumer potential in East Asia.

Abstract We propose a method to capture the effect of tax reforms on consumer’s readiness to buy using Google searches as a proxy. We use the Spanish 2010 and 2012 VAT reforms as a case of study. We use a regression discontinuity design taking advantage of the fact that the Spanish 2010 and 2012 VAT reforms had a sharp implementation date, which implies that from one day to another the tax rate for most goods was different, while other factors likely to influence consumer behaviour were similar on the days around the cut-off. We find a significant causal effect of the implementation of the reform on Google searches of durable goods, while we do not find any effect for non-durable goods. These results are in line with previous theoretical and empirical evidence according to which tax reforms cause consumers to modify more their readiness to buy durable goods. We also explore the effect of the reforms on readiness to buy specific goods such as movie tickets by taking advantage of a control group formed by similar leisure items that were unaffected by the 2012 reform.

This article examines the effects of remittances on the economic growth of the Republic of Moldova, determined by private consumption. To verify the link between remittances and development in the Republic of Moldova, the study uses a VECM approach. The result of the research is that, for the Republic of Moldova, remittances are an important source for private consumption, which in turn fuels the economic evolution of the country. In order to redirect remittances to investments, the government is implementing various strategies, which do not yet have the expected support of remittance holders. [ABSTRACT FROM AUTHOR]

In Bulgaria, as a country with a small open economy, external factors such as international prices of oil, food, raw materials and others have a serious impact on inflation; many other factors such as the growth of private consumption, wages and others have an impact as well. The purpose of the article is to examine the extent to which the growth of private consumption and wages contribute to inflation in our country. These two variables have the strongest impact on inflation in services, as many services in the economy cannot be imported from the outside world. [ABSTRACT FROM AUTHOR]

The current study explored the cogency of the Ricardian Equivalence Hypothesis (REH) in SAARC. For it, 29 years, time-series data from 1990 to 2018 have been used1. The Fixed effect model and Panel cointegration tests have been applied to consider the affiliation among the regressors. The fallouts of the study indicate that government debt and private consumption have a long-run cointegrated liaison with each other. The outcomes of the study reject the certainty of Ricardian equivalence in SAARC. Along with an upturn in government debt, private consumption increases and people do not postpone current consumption despite increasing government debt and expected taxes, which can be levied in future to repay the debt obligations. In addition, real GDP and Real government expenditure stimulate while real tax revenue discourages private consumption. The study also found two way causality between government debt and private consumption. The results also imply that fiscal policy is adequate to stabilize the economy. [ABSTRACT FROM AUTHOR]

This study develops a thick modelling tool for real private consumption, with a conditional forecasting application to the euro area. Several equations from thousands of error correction models, always including labour income, non-labour income, financial wealth and non-financial wealth as determinants, are selected from predetermined in-sample and out-of-sample criteria. Our thick model estimates show that income effects differ between labour and non-labour income and that their (relative) importance varies over time. This implies that labour and non-labour income should both be on the radar of policy makers and modellers. [ABSTRACT FROM AUTHOR]

The objective of this paper is to investigate the impact of inflation targeting strategy on monetary policy transmission mechanism by estimating the impact of deposit rate on consumption to GDP ratio in emerging market economies. The study considers sixteen years of annual data from 2001 to 2016 comprising of thirty-six emerging market economies (EMEs) including 16 inflation targeting countries and 20 non-inflation targeting countries. This study implies Generalized Method of Moments (GMM) for empirical investigation. The evaluation of transmission mechanism in the presence of inflation targeting strategy by estimating the impact of rate of interest on one of the significant components of aggregate demand, i.e., household consumption instead of output is the major contribution of this research. The study found a significant impact of inflation targeting on monetary policy transmission mechanism. [ABSTRACT FROM AUTHOR]

The empirical finding that cyclical changes in government spending tend to be associated with positive responses of private consumption has been interpreted as a challenge for representative agent intertemporal optimizing theories, which usually imply that the negative wealth effect of higher fiscal spending reduces the households¿ consumption and leisure. The present paper shows that the evidence can be explained by a standard real business cycle type model. With a nonadditively separable utility function and a small intertemporal consumption elasticity, higher fiscal spending can raise consumption and lower investment, as in the data. The nonseparable utility model is shown to imply the same consumption Euler equation as a model with “rule-of-thumb” consumers who mechanically spend their income. [ABSTRACT FROM AUTHOR]

The insurgence of exchange rate volatility over the years has gained the attention of not only the scholars but also the policy makers around the world. Also, its effects on private consumption are a missing gap in the literature most especially in Sub-Saharan African (SSA) Countries. Although, several studies have discussed the consequences of exchange rate volatility to growth but there is no documented empirical evidence on the relationship between exchange rate volatility and private consumption. This paper examines the effect of exchange rate volatility on private consumption in SSA countries using system-GMM dynamic panel and GARCH (1, 1) to generate exchange rate volatility series between 1999 and 2014. The exchange rate volatility series generated through GARCH (1, 1) fulfills the conditions of ARCH effect and volatility clustering. The result of the system-GMM shows that exchange rate volatility has negative and significant effect on private consumption in SSA countries. This result is further confirmed using various diagnostic tests such as Arellano and Bond test of first- and second-order serial correlation and Hansen J-statistic test of model specification and valid overidentified restrictions i.e. validity of instruments. Based on this, the study concludes that exchange rate volatility has significant negative effect on private consumption in SSA countries.

We propose a method to capture the effect of tax reforms on consumer's readiness to buy using Google searches as a proxy. We use the Spanish 2010 and 2012 VAT reforms as a case of study. We use a regression discontinuity design taking advantage of the fact that the Spanish 2010 and 2012 VAT reforms had a sharp implementation date, which implies that from one day to another the tax rate for most goods was different, while other factors likely to influence consumer behaviour were similar on the days around the cut-off. We find a significant causal effect of the implementation of the reform on Google searches of durable goods, while we do not find any effect for non-durable goods. These results are in line with previous theoretical and empirical evidence according to which tax reforms cause consumers to modify more their readiness to buy durable goods. We also explore the effect of the reforms on readiness to buy specific goods such as movie tickets by taking advantage of a control group formed by similar leisure items that were unaffected by the 2012 reform. [ABSTRACT FROM AUTHOR]

Copyright of Agricultura Sociedad y Desarrollo is the property of Colegio de Postgraduados and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista de Ciencias Sociales (13159518) is the property of Revista de Ciencias Sociales de la Universidad del Zulia Venezuela and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study seeks to analyze the effects of fiscal policy on private consumption by applying the smooth transition regression model. The advantage of this model is that it allows for fiscal policy shocks to vary with the changes in the fiscal policy and helps us capture the nonlinear nature of the fiscal multipliers of government consumption and tax revenues. This paper evaluates the effect of fiscal policy in Tunisia using annual data about the 1975–2010 period. The main results show that households tend to behave in non-keynesian manner during large fiscal expansions and contractions. [ABSTRACT FROM AUTHOR]

This paper examines the predictive relationship of consumption‐related and news‐related Google Trends data to changes in private consumption in the USA. The results suggest that (1) Google Trends‐augmented models provide additional information about consumption over and above survey‐based consumer sentiment indicators, (2) consumption‐related Google Trends data provide information about pre‐consumption research trends, (3) news‐related Google Trends data provide information about changes in durable goods consumption, and (4) the combination of news and consumption‐related data significantly improves forecasting models. We demonstrate that applying these insights improves forecasts of private consumption growth over forecasts that do not utilize Google Trends data and over forecasts that use Google Trends data, but do not take into account the specific ways in which it informs forecasts. [ABSTRACT FROM AUTHOR]

The study analyses the effect of public debt on private consumption. It indirectly tests whether a Ricardian equivalence proposition exists in differentiated financial development for the yearly data of 18 Asia Pacific countries from 1990 to 2017 using dynamic heterogeneous panel data analysis. The results allow concluding that public debt and private consumption have a long-term co-integrated relationship, and in the general approach, Ricardian equivalence does exist in both long and short term. This implies that an increase in public debt does not increase private consumption because consumers expect governments to raise taxes to service debt such as principal and interest payments. But under the traditional approach Ricardian equivalence does not exist, thus, public debt does affect private consumption. In addition, income, capital accumulation, government expenditure, real interest rate and inflation have a positive effect on private consumption. The key implication of these results is that financial development does not provide evidence for the existence of Ricardian equivalence as it does not have a different effect for different countries. [ABSTRACT FROM AUTHOR]