Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East

This paper estimates regional consumption functions based on the error correction model on the basis of the 2000–2002 data on real disposable income and consumption expenditures for 11 regions of the Far Eastern Federal District of Russia. The work reveals the existence of short-term and long-term r...

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Main Author: Artyom Gennadyevich Isaev
Format: Article
Language:Russian
Published: Economic Research Institute of the Far East Branch of the Russian Academy of Sciences 2024-12-01
Series:Prostranstvennaâ Èkonomika
Subjects:
Online Access:http://www.spatial-economics.com/images/spatial-econimics/2024_4/SE.2024.4.027-047.Isaev.pdf
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author Artyom Gennadyevich Isaev
author_facet Artyom Gennadyevich Isaev
author_sort Artyom Gennadyevich Isaev
collection DOAJ
description This paper estimates regional consumption functions based on the error correction model on the basis of the 2000–2002 data on real disposable income and consumption expenditures for 11 regions of the Far Eastern Federal District of Russia. The work reveals the existence of short-term and long-term relationships between the dynamics of income and consumption of the population, which are important for the generation of multiplicative effects in the economies of the corresponding regions. It is found that 7 regions of the Russian Federation (the Republic of Buryatia, Zabaykalsky Krai, Primorsky and Khabarovsk Krais, Amur and Sakhalin Oblasts, as well as the Jewish Autonomous Oblast) are characterized by the presence of both statistically significant short-term relationships between changes in income and changes in consumption, and long-term equilibrium ratios between income and consumption. The indicators of short-term marginal propensities to consume, which are the basis of regional multipliers of autonomous expenditures, have been calculated. For the Republic of Sakha (Yakutia) the data reveals a statistically significant short-term relationship between income and consumption in the absence of a long-term relationship between the indicators. For Kamchatka Krai, Magadan Oblast and Chukotka Autonomous Okrug, the absence of both short-term and long-term interrelations between income and consumption was confirmed, and, consequently, the absence of potential for generation of other multiplier effects in the economy, except for those due to purely inter-sectoral relations
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spelling doaj-art-d43c6bf274e94b119ef0a213043295f12025-08-20T02:46:50ZrusEconomic Research Institute of the Far East Branch of the Russian Academy of SciencesProstranstvennaâ Èkonomika1815-98342587-59572024-12-01204274710.14530/se.2024.4.027-047Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far EastArtyom Gennadyevich Isaev0https://orcid.org/0000-0001-6569-2982Economic Research Institute FEB RASThis paper estimates regional consumption functions based on the error correction model on the basis of the 2000–2002 data on real disposable income and consumption expenditures for 11 regions of the Far Eastern Federal District of Russia. The work reveals the existence of short-term and long-term relationships between the dynamics of income and consumption of the population, which are important for the generation of multiplicative effects in the economies of the corresponding regions. It is found that 7 regions of the Russian Federation (the Republic of Buryatia, Zabaykalsky Krai, Primorsky and Khabarovsk Krais, Amur and Sakhalin Oblasts, as well as the Jewish Autonomous Oblast) are characterized by the presence of both statistically significant short-term relationships between changes in income and changes in consumption, and long-term equilibrium ratios between income and consumption. The indicators of short-term marginal propensities to consume, which are the basis of regional multipliers of autonomous expenditures, have been calculated. For the Republic of Sakha (Yakutia) the data reveals a statistically significant short-term relationship between income and consumption in the absence of a long-term relationship between the indicators. For Kamchatka Krai, Magadan Oblast and Chukotka Autonomous Okrug, the absence of both short-term and long-term interrelations between income and consumption was confirmed, and, consequently, the absence of potential for generation of other multiplier effects in the economy, except for those due to purely inter-sectoral relationshttp://www.spatial-economics.com/images/spatial-econimics/2024_4/SE.2024.4.027-047.Isaev.pdfregionconsumptiondisposable incomeerror correction modelmarginal propensity to consumeautonomous expenditure multiplierpermanent income hypothesisfar eastern federal district
spellingShingle Artyom Gennadyevich Isaev
Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
Prostranstvennaâ Èkonomika
region
consumption
disposable income
error correction model
marginal propensity to consume
autonomous expenditure multiplier
permanent income hypothesis
far eastern federal district
title Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
title_full Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
title_fullStr Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
title_full_unstemmed Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
title_short Modelling and Estimation of Regional Consumption Functions: A Case for the Russian Far East
title_sort modelling and estimation of regional consumption functions a case for the russian far east
topic region
consumption
disposable income
error correction model
marginal propensity to consume
autonomous expenditure multiplier
permanent income hypothesis
far eastern federal district
url http://www.spatial-economics.com/images/spatial-econimics/2024_4/SE.2024.4.027-047.Isaev.pdf
work_keys_str_mv AT artyomgennadyevichisaev modellingandestimationofregionalconsumptionfunctionsacasefortherussianfareast