Journal of Indonesian Applied Economics
Vol. 3 No. 2 (2009)

FUNGSI KONSUMSI RUMAH TANGGA DI INDONESIA (PENDEKATAN MODEL KOREKSI KESALAHAN)

Maryam Sangaji (Fakultas Ekonomi Universitas Pattimura, Ambon)



Article Info

Publish Date
16 May 2012

Abstract

Keynesian theory about consumption states that household consumption (C) relatedpositively with present income:  the greater  income  the more consumption. Besidethat,  interest rate  influence negatively  toward household consumption, because  ifthe interest rate is low then the loan cost  also low, so the factor encourage householdto increase it consumption. The results showed that income level related positivelywith  household consumption level. While the interest rate related negatively  withconsumption  level.  It means  that  the  greater  income encourage  the household  toincrease its consumption. But the increase is not as high as the income level. Thenthe higher interest rate will cause the household increase its saving, so decrease theconsumption. The test by using error correction model (ECM) showed that balancevariable of ECT is significant, where for that the household consumption adaptedwith the income level change and the interest rate at the same period.Keywords: Household  Consumption  Level,  Income,  Interest  Rate,  and  ErrorCorrection Model.

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Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...