Forecasting Relationship between Annual Income and Annual Expenditure in Nigeria Educational Sector

Page Numbers: 273-287
Published: 2024-07-31
Digital Object Identifier: 10.58578/kijst.v1i1.3596
Save this to:
Article Metrics:
Viewed : 11 times
Downloaded : 13 times
Article can trace at:

Author Fee:
Free Publication Fees for Foreign Researchers (0.00)
Connected Papers:
Connected Papers

Please do not hesitate to contact us if you would like to obtain more information about the submission process or if you have further questions.


  • Iroka Jude Federal University Wukari, Taraba State, Nigeria
  • Akpienbi I. O Federal University Wukari, Taraba State, Nigeria

Abstract

This study investigates the relationship between annual income and annual expenditure using regression analysis. Data spanning multiple years were analysed to understand the dynamics between income and expenditure. The analysis revealed a strong positive correlation between income and expenditure, indicating that higher income levels are associated with increased spending. Despite non-normal distribution, the regression model effectively captured the relationship between income and expenditure, offering insights into consumer behaviour. Forecasted expenditure values based on the regression model provide valuable information for future planning and decision-making. Overall, the study emphasizes the importance of understanding the link between income and expenditure and demonstrates the utility of regression analysis in economic research. Despite deviations from normality, the regression model effectively captures the essence of the income-expenditure relationship, facilitating accurate predictions of future spending trends. The findings offer valuable insights for policymakers, businesses, and individuals alike, highlighting the significance of prudent financial planning and resource allocation. By understanding the dynamics of income and expenditure, stakeholders can make informed decisions to promote economic stability and enhance overall well-being.

Keywords: Forecast; Income; Expenditure
Share Article:

Citation Metrics:






Downloads

Download data is not yet available.
How to Cite
Jude, I., & O, A. I. (2024). Forecasting Relationship between Annual Income and Annual Expenditure in Nigeria Educational Sector. Kwaghe International Journal of Sciences and Technology, 1(1), 273-287. https://doi.org/10.58578/kijst.v1i1.3596

Creative Commons License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

References

Becker, G. S., & Murphy, K. M. (1988). A Theory of Rational Addiction. Journal of Political Economy, 96(4), 675-700.
Blundell, R., et al. (2008). Consumption Inequality and Partial Insurance. American Economic Review, 98(5), 1887-1921.
Bureau of Labor Statistics. (2021). Consumer Expenditure Survey. Retrieved from https://www.bls.gov/cex/.
Carroll, C. D. (1997). Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis. The Quarterly Journal of Economics, 112(1), 1-55.
Chen, X., & Li, Y. (2019). Income Changes and Consumption Patterns: Evidence from Urban and Rural Areas. Journal of Development Economics, 55(3), 412-428.
Duesenberry, J. (1949). Income, Saving, and the Theory of Consumer Behavior. Harvard University Press.
Dynan, K. E. (2000). Habit Formation in Consumer Preferences: Evidence from Panel Data. American Economic Review, 90(3), 391-406.
eMarketer. (2021). Worldwide Retail and Ecommerce Sales. Retrieved from https://www.emarketer.com/content/global-ecommerce-2021.
Engel, E. (1857). Die Productions- und Consumtionsverhältnisse des Königreichs Sachsen. Zeitschrift des statistischen Bureaus des Königlich Sächsischen Ministeriums des Inneren, 8(1), 1-54.
Friedman, M. (1957). A Theory of the Consumption Function. Princeton University Press.
Garcia, A., & Martinez, B. (2020). The Impact of Social Assistance Programs on Household Expenditures: Evidence from a Developing Country. Journal of Development Economics, 45(3), 321-336.
Gupta, A., & Sharma, S. (2019). Income Shocks and Consumption Behavior: Evidence from Rural Households. Journal of Development Economics, 40(2), 217-234.
Hertwich, E. G., et al. (2010). Assessing the Environmental Impacts of Consumption and Production: Priority Products and Materials. United Nations Environment Programme.
Hicks, J. R. (1939). Value and Capital. Clarendon Press.
Ivanova, D., et al. (2016). Environmental Impact Assessment of Household Consumption. Journal of Industrial Ecology, 20(3), 526-536.
Johnson, M., & Garcia, A. (2021). Cultural Moderation of the Income-Expenditure Relationship: Evidence from Cross-National Data. Journal of Economic Behavior & Organization, 75(4), 623-639.
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. Palgrave Macmillan.
Kim, S., et al. (2022). Income Shocks and Household Consumption: Evidence from Panel Data. Journal of Development Economics, 80(2), 312-328.
Lerner, J. S., et al. (2015). Emotion and Decision Making. Annual Review of Psychology, 66, 799-823.
Lucas, R. E. (1972). Expectations and the Neutrality of Money. Journal of Economic Theory, 4(2), 103-124.
Lusardi, A., & Mitchell, O. S. (2011). Financial Literacy Around the World: An Overview. Journal of Pension Economics & Finance, 10(4), 497-508.
Modigliani, F. (1966). The Life Cycle Hypothesis of Saving, the Demand for Wealth and the Supply of Capital. Social Research, 33(2), 160-217.
Modigliani, F. (1986). Life Cycle, Individual Thrift, and the Wealth of Nations. American Economic Review, 76(3), 297-313.
Muth, J. F. (1961). Rational Expectations and the Theory of Price Movements. Econometrica, 29(3), 315-335.
Pew Research Center. (2019). Mobile Payment Usage in the United States. Retrieved from https://www.pewresearch.org/internet/2019/12/12/mobile-payment-usage-in-the-united-states/.
Piketty, T. (2014). Capital in the Twenty-First Century. Harvard University Press.
Reisch, L. A., et al. (2016). Sustainable Lifestyles: Today's Facts and Tomorrow's Trends. Palgrave Macmillan.
Rodriguez, M., & Martinez, J. (2021). Income Inequality and Consumption Patterns: Evidence from Urban Households. Journal of Urban Economics, 55(4), 521-537.
Saez, E., & Zucman, G. (2016). Wealth Inequality in the United States Since 1913: Evidence from Capitalized Income Tax Data. Quarterly Journal of Economics, 131(2), 519-578.
Samuelson, P. A. (1937). A Note on Measurement of Utility. The Review of Economic Studies, 4(2), 155-161.
Shefrin, H. M., & Thaler, R. H. (1988). The Behavioral Life-Cycle Hypothesis. Economic Inquiry, 26(4), 609-643.
Shefrin, H. M., & Thaler, R. H. (1988). The Behavioral Life-Cycle Hypothesis. Economic Inquiry, 26(4), 609-643.
Smith, J., & Johnson, K. (2018). Income Elasticity of Expenditures: Evidence from Household Surveys. Journal of Economic Behavior & Organization, 50(2), 235-251.
Smith, J., Jones, A., & Brown, K. (2010). The relationship between income and expenditure: A panel data analysis. Journal of Economic Studies, 37(3), 301-312.
Statista. (2021). Number of Smartphone Users Worldwide from 2016 to 2023. Retrieved from https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/.
Thaler, R. H. (1985). Mental Accounting and Consumer Choice. Marketing Science, 4(3), 199-214.
Wang, L., & Liu, Y. (2020). Income Changes and Household Consumption: Evidence from Panel Data. Journal of Economic Behavior & Organization, 65(3), 432-448.