CORRELATION BETWEEN PER CAPITA INCOME AND EXPENDITURE OF DIFFERENT INCOME GROUP COUNTRIES

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