ANALYSIS OF THE CORRELATION BETWEEN HOUSEHOLDS INCOME AND EXPENDITURES

Abstract

In this paper, the authors study the correlation between the incomes and expenses of the population. The analysis is based on proper indicators that are the evolution of total income and expenses with the household as aggregate factor, the coverage of expenses through the incomes. Also, the total indicators were explained. The main categories of households taken into consideration were employees, unemployed, farming households and retirees. The statistical analysis covers the interval 2010-2014. In order substantiate the results of the research, an econometric model is presented, based on the datasets for gross available incomes and private consumption. The authors first analyse the statistical characteristics of the two variables, then observe the potential correlation through a dot plot chart. After ascertaining the opportunity to estimate a regression model, the parameters of the corresponding equation are deducted with the help of a dedicated software system. The results of the model are analysed and the path for further researches is emphasized.

Keywords

• income
• household
• expense
• consumption
• regression