The practice of household expenditure in Ukraine: factor analysis and estimate

Abstract

The purpose of the paper is to research the practice of household expenditure in Ukraine and factor analysis of the impact on one. The indicators for estimating household expenditure allow for finding how their financial stability has changed over ten years (from 2010 to 2020). Methodology. The study results were obtained after analysing the indicators of household expenditure (from 2010 to 2020). In the course of the research, an analysis, and synthesis as methods of theoretical knowledge of phenomena has been used. Comparisons and measurements are used as empirical methods for the conducted research. Results of the research showed that on average per month per household expenditure increased 3 times for the period 2010–2020. Despite this practice, no significant changes have taken place in their structure – about 90% of ones are spent on the consumption of goods and services. Proposed relative indicators for estimating household expenditure (Food cost ratio coefficient (Cfe ) and Engel's coefficient (Cе )) showed a decrease in their values in 2020 compared to 2010. Calculated linear functions of the dependence of household expenditure show the amount of their income had a greater impact on expenditure than the change in prices for goods and services. This indicates a deterioration in the financial stability of domestic households. Practical implications. For conducting research and substantiation of relevant conclusions, the indicators of household expenditure for ten years have been analyzed (from 2010 to 2020). Value/originality. The researched relative coefficients Cfe and Cе expand the methodological basis for estimating the financial stability of households through the prism of their expenditure.