Macroeconomic and Demographic Determinants of Household Expenditures in OECD Countries

Modelling Tax-Consumption Relationship: An Empirical Evidence from Asia

“…Furthermore, the t-statistic value is sufficiently high at 13/14 2.87 which suggests that the tax has a highly significant and negative influence on consumption. This finding is parallel to findings of Romer and Romer (2010), Burge and Rogers (2011), Alm and Ganainy (2012), Bartkus (2017), Varlamova and Larionova (2015), Leka (2015), Strilkova and Siroky (2015), Baker and Kueng (2016), and Kolahi et al (2016), who propose a negative impact of tax on the household consumption expenditure. The study's finding is in line with absolute income hypothesis's proposition that an increase in tax results in a reduction of income and household consumption expenditure.…”

“…In contrast to above studies, Romer and Romer (2010), Alm and Ganainy (2012), Tamasauskiene and Opulskyte (2012), Varlamova and Larionova (2015), Strilkova and Siroky (2015), Baker and Kueng (2016), Kolahi et al (2016), and Bartkus (2017) who apply panel data estimation approach argue negative relationships between tax and consumption expenditure of household. Applying the panel OLS to analyse the sample countries from OECD, Varlamova and Larionova (2015) revealed negative relationship between taxes and household expenditure. Subsequently, by extending the panel estimation to dynamic panel data based on generalized method of moments (GMM) system estimators to different countries set, Alm and Ganainy (2012) and Kolahi et al (2016) confirm that VAT (value added tax) has a significant negative effect on consumption.…”

“…Some of the studies were highlighted by Ajibola and Segun (2017), Leka (2015), and Eusebio and Franchesca (2013) who suggested a positive impact of tax on households' consumption expenditure. Other group of researchers namely Varlamova and Larionova (2015), Tamasauskiene and Opulskyte (2012), Baker and Kueng (2016), and Kolahi et al (2016) emphasised on negative relationships between tax and consumption expenditure. These mixed 9/14 results suggested the need to reinvestigate the issue of tax-consumption relationship in order to suggest appropriate policy implication to the policy makers.…”

Non-Linear Effect of Government Spending on Private Consumption in Cambodia: Markov-Switching Autoregressive Model

“…The disposable income is not taken into account, thereby lessening the robustness of the linkage between government expenditure and private consumption (Graham, 1993). Ho (2001), Wang and Gao (2011), and Varlamova and Larionova (2015) indicate that disposable income plays a vital role in the elasticity of private consumption because the improvement of households' capability reacts to an increase in disposable income.…”

Relative Poverty Measurement by Equivalent Income

“…Change of household expenditures occurs under the influence of such macroeconomic factors as disposable income of households, government spending, inflation, the interest rate that should be considered in public policies. They show that population and the education level of population is significant demographic factors that influence consumer spending and household spending on health [10].…”