Value Added Tax and Consumer Spending: A Graphical Descriptive Analysis

Gelardi, Alexander M. G.

doi:10.5296/ajfa.v5i1.2762

Cited by 8 publications

(10 citation statements)

References 14 publications

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“…Since consumer spending can change direction at any point (Muellbauer, 1994), influenced by factors as diverse as tax changes and the weather (Gelardi, 2013; Murray et al. , 2010), organizations may shun long‐term marketing decisions in favour of strategies that generate short‐term sales (Grande, 2006; Tzavlopoulos et al.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Since consumer spending can change direction at any point (Muellbauer, 1994), influenced by factors as diverse as tax changes and the weather (Gelardi, 2013;Murray et al, 2010), organizations may shun long-term marketing decisions in favour of strategies that generate short-term sales (Grande, 2006;Tzavlopoulos et al, 2019). These continuous changes and developments, alongside noticeable increases in disposable income, have helped drive changes in the significance of and motivations for consumer spending (Dittmar, 2005;Lee et al, 2021).…”

Section: Consumer Spendingmentioning

confidence: 99%

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Harnessing Customer Mindset Metrics to Boost Consumer Spending: A Cross‐Country Study on Routes to Economic and Business Growth

Shaalan

Agag

Tourky

2022

British J of Management

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The relationship between customer mindset metrics (CMMs) and consumer spending has been extensively investigated at the consumer and firm level, but little is known about it at the national level, nor about how it differs between countries. Drawing on five publicly available datasets gathered in 10 European countries over 20 years, our study traces the connections between three CMMs -customer satisfaction, perceived service quality and loyalty intentions -and consumer spending, as well as examining the moderating cross-country effects of culture, socioeconomic factors, economic structure and politicaleconomic elements. The results show that the CMMs significantly influence consumer spending in all the countries studied, with the effects most pronounced in societies with relatively low education levels, a dominant service sector, fewer barriers to business and international trade and a foundation of survival values rather than self-expressive values. Our findings suggest that CMMs can be used to boost not just business performance but also economic growth, and therefore have significant implications for policymakers as well as practitioners and companies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Consumer Spendingmentioning

confidence: 99%

Harnessing Customer Mindset Metrics to Boost Consumer Spending: A Cross‐Country Study on Routes to Economic and Business Growth

Shaalan

Agag

Tourky

2022

British J of Management

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“…He argued that it is a common practice among households that they could only save when there is a rise in their income and consumption, and they prefer to borrow to sustain their increased comparison level than reducing it. Alexander and Gelardi (2012) explained that households plan their consumption over their lifetime considering their future earnings. Many individuals take debts when they are young and vibrant, considering their future earnings to pay off their debts, then save during their middle age just to sustain their consumption level after retirement.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Do the Consequence of Taxation Impact Household Consumptions in Nigeria? Absolute Outcome from Autoregressive Distributed Lag (ARDL)

Adegbite

2023

S. Asian J. Finance

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Purpose: This study investigated taxes’ effect on household consumption expenditure in Nigeria. Taxation was examined through Petroleum Profit Tax, Company income Tax, Value Added Tax, and Customs and excise duties while household consumption expenditure was proxied with the aggregation of households’ expenditure expended on daily needs and procurement of others useful products.Design/Methodology/Approach: The established data are sourced through Central Bank of Nigeria statistical bulletin and annual reports of federal Inland Revenue for a period of 31 years, spanning from 1990-2021, in order to examine the effect of taxation on household consumption expenditure in Nigeria. To achieve the motive behind this study, Autoregressive distributed lag Model, unit root test, Cointegration Test, correlation analysis, lag selection test, and regression, as well as normality test and stability test, were also involved as post-analysis confirmatory tests.Findings: It was discovered that Petroleum Profit Tax has significant, strong, and positive influence on household consumption, but Company income Tax, Value Added Tax, and Customs and Excise duties have negative significant influence on household consumption. Conclusively, taxes have a negative effect on household consumption expenditure in Nigeria.Originality: Having critically reviewed the existing studies, it was invariably realized that none of the extant studies examined how taxes influence household consumptions in Nigeria, their studies were confined to taxation effect on economic growth, investment, inflation, and government expenditure. Hence, this study incorporated Autoregressive distributed lag (ARDL) Model to analyze the effect of taxes on household consumption in Nigeria which made the study unique among the existing studies.

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“…Research conducted by Gelardi (2012), by examining shopper habits in the UK and Canada. The purpose of this study is to ascertain whether any rise in the luxury goods sales tax has an impact on retail.…”

Section: Government Intervention In the Form Of Tax Policy To Limit/r...mentioning

confidence: 99%

Tax Policy in Limiting the Consumption of Luxury Goods

Yossinomita¹

2022

R. Econ. and Finan.

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This literature review explores tax policy in reducing or limiting the consumption of luxury goods. This exploration has crucial theoretical and practical significance with the rapid development of the economy and technology, in which the income level of the people has increased rapidly. Excessive consumption of luxury goods will have a negative impact on the country's economic development. This is because inequality is widening, income is reduced, social equality is lost, and the demand for domestic goods will weaken. These issues will later cause widespread public concern. The policy to reduce or limit the consumption of luxury goods marked by an increase in consumption outflows is the adjustment of taxes on luxury goods. As one of the macroeconomic control policies taken by the government, the adjustment of tariffs, income taxes, and consumption taxes on luxury goods has proven to be effective in controlling the demand for luxury goods. Several international studies have obtained a fairly in-depth analysis of this issue from a tax policy perspective. This study attempts to explore the international research literature on tax policy in limiting the consumption of luxury goods.

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Value Added Tax and Consumer Spending: A Graphical Descriptive Analysis

Cited by 8 publications

References 14 publications

Harnessing Customer Mindset Metrics to Boost Consumer Spending: A Cross‐Country Study on Routes to Economic and Business Growth

Harnessing Customer Mindset Metrics to Boost Consumer Spending: A Cross‐Country Study on Routes to Economic and Business Growth

Do the Consequence of Taxation Impact Household Consumptions in Nigeria? Absolute Outcome from Autoregressive Distributed Lag (ARDL)

Tax Policy in Limiting the Consumption of Luxury Goods

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