A Time Series Analysis of Macroeconomic Determinants of Household Spending in the Era of Cross-cultural Dynamics: Czech Republic as a Case Study

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Procedia Economics and Finance, ISSN: 2212-5671, Vol: 12, Page: 733-742

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http://publikace.k.utb.cz/handle/10563/1004123; http://hdl.handle.net/10563/1004123
Verter, Nahanga; Osakwe, Christian Nedu
Elsevier BV; Elsevier Science B.V.
Household spending; income; globalization; Czech Republic; Granger causality
article description
The paper investigates selected macroeconomic variables where are seemingly influencing household spending in the Czech Republic in the present era of evolving cross-cultural interactions from 1993–2012. Based on the estimated regression model, it is plausible to state that net disposable income, cross-cultural dynamics, inflation rate, and saving rate as a proportion of disposable household income impact significantly on household spending. Moreover, the Granger causality analysis provides evidence of a feedback relationship between household spending and social globalization index. The results equally indicate bidirectional causality between saving rate and household spending as well as between the inflation rate and household spending.