Scholarly Research Journal for Interdisciplinary Studies, Online ISSN 2278-8808, SJIF 2021 = 7.380, www.srjis.com PEER REVIEWED & REFEREED JOURNAL, NOV-DEC, 2022, VOL- 10/74 CORRELATION BETWEEN PER CAPITA INCOME AND EXPENDITURE OF DIFFERENT INCOME GROUP COUNTRIES L.G. Retwade1, Nitin D. Ade2 (ORCID ID 0000-0002-0189-8997), Kalpesh U. Mendke3 & Ramesh Sayaji Desai4 1
Assistant Professor, Department of Economics, Appasaheb Jedhe Arts, Commerce & Science
College, Pune, 411002 2
Corresponding Author (ni3ade@gmail.com) Associate Professor, Department of Economics,
MES Abasaheb Garware College, Pune, Maharashtra 411004 3
Research Scholar, Post Graduate Research Centre in Economics, MES Abasaheb Garware
College, Pune, Maharashtra 411004 4
Assistant Professor, Department of Economics, Shri Shahu Mandir College, Pune411009
Paper Received On: 25 DECEMBER 2022 Peer Reviewed On: 31 DECEMBER 2022 Published On: 01 JANUARY 2023 Abstract The researcher is trying to explain the relationship between income and expenditure/ consumption with the help of higher, middle- and lower-income countries. We can prove if country having high income, then the expenditure of that country is also higher. For this research the researcher took per capita income and per capita expenditure of 9 countries from various sources. The time period of data is from 2010 to 2015. Firstly we took data of same group of countries. And after that the researcher compares different three countries from each class (higher, middle, and lower) and explained the difference. The relation between income and expenditure is frequently called a utilization plan or consumption schedule. It is utilized to portray monetary patterns in the industry or organization. When there is more cash or expectation of income, more products are bought by purchasers. In this article the following function with the help of all the data has observed C = F(Y) and Y = C + S, as ↑ Y → Consumption↑ Keywords- expenditure, consumption, per capita expenditure Scholarly Research Journal's is licensed Based on a work at www.srjis.com
Introduction Income, expenditure and savings are interrelated. The expenditure incurred on the various needs is vital to enhance the health status and welfare of households. On the other hand, savings are essential for future use. According to the theory of consumption (Dornbusch, 2016), consumption patterns vary according to income levels of households; higher income household tends to allocate smaller percentage for daily needs such as food and clothing and higher Copyright © 2022, Scholarly Research Journal for Interdisciplinary Studies