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The Issue of Measuring Household Consumption Expenditure

Author

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  • Emilia Madudova

    (Department of Communications, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 8215/1, 01026 Zilina, Slovakia)

  • Tatiana Corejova

    (Department of Communications, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 8215/1, 01026 Zilina, Slovakia)

Abstract

Household consumption expenditure is an important measure of economic activity as it reflects the spending behavior of households and their purchasing power. The measurement of household consumption expenditure is critical for analyzing economic growth, inflation, and overall economic performance. In order to create budgets and financial plans, it is necessary to know and understand the relationship between the size of households in terms of the number of members, the number of children, and their consumption needs. The aim of the research was to determine the statistical significance of the relationship between household size and consumer spending at the national (Slovak Republic) level and also to analyze the relationship between household size and spending on food as a significant component of consumer spending. An analysis of variance (ANOVA) was applied to examine the relationship between household size and consumer spending. Regression analysis with linear regression and fitting was used to determine the relationship between consumer spending and household size with different numbers of children. The results analyze the correlations and test the hypothesis of a significant difference in the types of consumption expenditure in relation to different household sizes (number of children). Results confirm significant differences in consumption expenditure between different household sizes, which confirms the importance of these results.

Suggested Citation

  • Emilia Madudova & Tatiana Corejova, 2023. "The Issue of Measuring Household Consumption Expenditure," Economies, MDPI, vol. 12(1), pages 1-15, December.
    • Handle: RePEc:gam:jecomi:v:12:y:2023:i:1:p:9-:d:1308614
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    References listed on IDEAS

    as
    1. Philippe De Vreyer & Sylvie Lambert & Martin Ravallion, 2020. "Unpacking Household Engel Curves," NBER Working Papers 26850, National Bureau of Economic Research, Inc.
    2. Zezza, Alberto & Carletto, Calogero & Fiedler, John L. & Gennari, Pietro & Jolliffe, Dean, 2017. "Food counts. Measuring food consumption and expenditures in household consumption and expenditure surveys (HCES). Introduction to the special issue," Food Policy, Elsevier, vol. 72(C), pages 1-6.
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    1. Vlasios Oikonomou & Samuele Livraghi & Konstantina Karalaiou & Ivana Rogulj & Stavros Spyridakos & Christos Tourkolias, 2025. "How to Distinguish Income Indicators of Energy and Transport Vulnerability—A Case Study of Greece," Sustainability, MDPI, vol. 17(10), pages 1-23, May.

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