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Econometric Modeling of Final Consumption by Linear Multifactorial Regression

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  • Ligia Prodan

Abstract

The interest of this article is the research of the final consumption in Romania, during 1990-2014. The article analyzes the final consumption correlated with the evolution of households and government consumption. To study the correlation between the three variables, the article suggests using multifactor model to explain the variation in final consumption based on the simultaneous influence of the two indicators mentioned above. In this model the final consumption is considered as a resultative variable and the households and government consumption as factorial variables. Data on a yearly frequency was used covering the period 1990-2014 and to ensure comparability of data we have it deflated, taking as a basis 1990.

Suggested Citation

  • Ligia Prodan, 2015. "Econometric Modeling of Final Consumption by Linear Multifactorial Regression," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(3), pages 71-76, July.
    • Handle: RePEc:hur:ijaraf:v:5:y:2015:i:3:p:71-76
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