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Financial Analytics: Science and Experience
 

Analyzing factors that influence the households’ level of ultimate consumption in the Russian Federation

Vol. 10, Iss. 5, MAY 2017

PDF  Article PDF Version

Received: 30 November 2016

Received in revised form: 9 March 2017

Accepted: 13 March 2017

Available online: 15 May 2017

Subject Heading: HOME ECONOMICS

JEL Classification: A22, C15, C21, C31, P51

Pages: 518-533

https://doi.org/10.24891/fa.10.5.518

Tret'yakova O.G. Financial University under Government of Russian Federation, Moscow, Russian Federation
1466782@mail.ru

Rozhkova D.S. Financial University under Government of Russian Federation, Moscow, Russian Federation
dariarozhkova1515@rambler.ru

Importance Consumption is the final step of the reproduction process. It implies that the product is used to satisfy certain needs. It is a purpose of tangible production in any economic system, through social groups demonstrate different consumption levels.
Objectives The research studies factors that influence how much households ultimately consume in the Russian Federation.
Methods We applied techniques of logic, statistical, regression and factor analysis, step?by-step exclusion of variables, principal component analysis.
Results Ultimate consumption of the Russian households primarily depends on the population's income, its medical treatment in case of initially found disease, consumer price indexes year-on-year, and the use of the Internet.
Conclusions and Relevance All the coefficients used in the research appeared to be significant. The determination coefficient shows the average quality of the model. The ultimate production growth depends on such factors as financial aspects, Internet access, morbidity and CPI. Variables are difficult to interpret, since, considering principal components, a change in any component entails changes in the other regressors in the model.

Keywords: analysis, correlation, regression, consumption, consumer price index

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