Analysis of Household Behavior in Consumption According to Members and Ages and its Impact on Public Consumption of Iraq

Abstract

Public consumption is one of the main components of the total demand function, which affects economic stability, inflation, unemployment, and the success of monetary and financial policy in achieving its short-term goals. Therefore, household behavior in consumption and analysis of the factors affecting in it, will draw the role of public consumption in stimulating total demand, investment, production, employment, it increases the effectiveness of financial and monetary policy in achieving its goals, or a burden on the macroeconomics, represented by increasing the gap in total demand, imports, trade deficit, imported inflation and unemployment in case that local production does not respond to the increase in public consumption. And from here the study clarifies this economic problem by analyzing and demonstrating the behavior of Iraqi families according to the members and ages in consumption and their effect on increasing the economic burden on the decision-maker in the economic reform of Iraq.