Age and income in affecting household consumption in Denpasar region
1 Department of Economic Development, Faculty of Economic and Business, Warmadewa University, Denpasar, Bali, Indonesia.
2 Department of Accounting, Faculty of Economic and Business, Warmadewa University, Denpasar, Bali, Indonesia.
Research Article
World Journal of Advanced Research and Reviews, 2024, 24(03), 3008-3015
Publication history:
Received on 16 November 2024; revised on 28 December 2024; accepted on 30 December 2024
Abstract:
Consumption expenditure is one of the indicators used to measure the objective well-being. The average per capita household consumption expenditure in Denpasar City has decreased during Covid-19 until post Covid-19 but remains the highest compared to other districts in Bali Province. The purpose of this study was to analyze age and income in affecting household consumption expenditure in Denpasar City. Primary data obtained from respondents used in this study. Based on the results of the analysis using multiple linear regression analysis techniques, it was found that age had a positive but insignificant effect, while income had a positive and significant effect on household consumption expenditure in Denpasar City. This study confirms Modigliani`s Life Cycle Theory and Engel Curve that used in this study to build the research model. The implication of this study is the income used to increase household consumption expenditure is fixed income. For Balinese Hindu families, rahinan and menyama braya are mandatory consumption expenditures in addition to primary needs that must be met.
Keywords:
Age; Income; Consumption; Household; Denpasar
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