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End Household Consumption as a Factor of Bulgaria’s Economic Development

Author

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  • Lydmil Nestorov

Abstract

The study discusses the changes in the nominal and disposable income as basic factor of household consumption in the country over the last year of transition to a market economy. On the basis the change effects in the overall households expenditure and their purchasing power are sought. It has been found out that they are typical of an extremely poor nation. The analysis done on the basis of the average and marginal consumption propensity, as well as the values of the households consumption multiplier and accelerator in Bulgaria for the period of 1990 – 2000 indicate that at this stage it is not able to play the role of the driving force for increasing the production and fostering the economic growth in the country.

Suggested Citation

  • Lydmil Nestorov, 2002. "End Household Consumption as a Factor of Bulgaria’s Economic Development," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 116-140.
  • Handle: RePEc:bas:econst:y:2002:i:2:p:116-140
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Summers, Lawrence H, 1990. "The Noise Trader Approach to Finance," Journal of Economic Perspectives, American Economic Association, pages 19-33.
    2. Pogue, Gerald A. & Solnik, Bruno H., 1974. "The Market Model Applied to European Common Stocks: Some Empirical Results," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(06), pages 917-944, December.
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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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