Analysis of consumer money expenditures of Ukrainian households in 2014

Abstract

Introduction. Household consumption is the most important component of aggregate demand. It affects the conjuncture of the domestic commodity market and determines the rates of macroeconomic dynamics. The analysis of consumer behavior is both a subject of study of various scientific theoretical approaches, and the object of macroeconomic regulation.

Purpose. The purpose of the article is to calculate the level of break-even income for urban and rural Ukrainian households and to identify priorities of different areas of economic policy to reduce the identified differentiation in consumption.

Method (methodology). The study is based on theoretical principles of Keynesian consumption function. Such methods as approximations, statistical grouping, comparison and systematic approach are used in the article.

Results. Peculiarities in the distribution of money income and consumer expenditures of urban and rural households depending on size of per capita equivalent income are found out. The functional dependence between income and consumer spending for Keynesian approach has worked out. The deviation of break-even income from the subsistence level income by type of residence is analyzed. Covering level of break-even income by minimum transfer payments is rated. Distinctions in the consumption structure of different household’s groups depending on size of per capita equivalent money income have been found out.

The results of analysis of household’s consumer behavior can determine the priorities of macroeconomic policy for reduce the negative effects of differentiation in the consumption of urban and rural population. Their implementation will contribute to the validity of grounding on state regulation and ensuring their integrated nature in implementation of the global goal. The latter is the improvement of the social welfare.