The link between government spending, consumer confidence and consumption expenditures in emerging market countries

Autor: Özerkek Yasemin, Çelik Sadullah
Jazyk: English<br />French
Rok vydání: 2010
Předmět:
Zdroj: Panoeconomicus, Vol 57, Iss 4, Pp 471-485 (2010)
Druh dokumentu: article
ISSN: 1452-595X
DOI: 10.2298/PAN1004471O
Popis: The impact of government spending on private consumption is extensively studied in the literature. However, the main theme of these studies is the possible crowding-in or crowding-out impact of government spending on consumer spending. This paper attempts to introduce a new variable to this well-known literature by investigating the existence of a relationship between government expenditure, consumer spending and consumer confidence for a group of emerging market countries. We examine whether a change in consumer confidence causes any change in government spending. Moreover, we analyze whether there is a feedback from government spending and private consumption to consumer confidence. Our empirical findings demonstrate the important role of consumer confidence on government spending and private consumption expenditures.
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