| Abstract [eng] |
The Master's thesis analyses the impact of disposable income on consumption expenditure by purpose of consumption in the EU–27 over the period 2004–2022. The aim of the study is to identify the sensitivity of different groups of consumption expenditure to changes in disposable income in the EU–27 across different income groups by summarising the determinants of consumption. The first part of the master's thesis analyses the scientific literature in order to summarise and systematise the theories explaining consumption expenditure and its changes from different foreign authors and to identify the determinants of consumption. The results of research on the marginal propensity to consume for different groups of consumption expenditure are reviewed. It also summarises the results of research on the impact of disposable income on consumption expenditure groups. The second part develops a methodology for assessing the impact of disposable income on consumption expenditure by consumption purpose. The steps involved in the construction of the empirical model are outlined. The rationale for the sample chosen for the empirical study, the time period and the grouping of the EU–27 countries is provided. The factors chosen for the study and the indicators that reflect them are justified. The hypothesis of the study is formulated and a model for assessing the impact of disposable income on consumption expenditure is developed. The stages of the study and the research methods used in them are outlined. An assessment of the reliability of the study and the limitations of the study are also made. In the third part of the thesis, the impact of disposable income on consumption expenditure by consumption purpose is examined. It analyses the dynamics of consumption expenditure and disposable income indicators for the EU–27 group of countries over the period 2004–2022. An econometric assessment of the fit and robustness of the model of consumption expenditure and disposable income is carried out. The results of the study are analysed and evaluated, and compared with the results obtained by other researchers. The study was carried out using a linear least squares regression model, with the dependent variable being consumption expenditure by purpose, and the independent variables being loans granted, assets owned, price levels in the countries, consumer expectations, and the proportion of pensioners in society. Statistical data were collected from Eurostat, International Financial Statistics, OECD and Traiding Economics databases. The results confirmed that disposable income has the biggest impact on consumption expenditure. The empirical results confirmed the hypothesis that an increase in disposable income has a greater impact on essential consumption expenditure in the group of relatively lower income countries. The effect was found to be positive and very strong, with a 1% increase in income increasing expenditure on food and non-alcoholic beverages by as much as 0,68% at the 99% level of statistical significance, and expenditure on transport by almost 0,75% at the 95% level of statistical significance. |
