Econometric analysis of the cr consumption function

Abstract

The econometric analysis of the quarterly time series allows for the conclusion that despite a considerable fall of GDP the development of the real consumption in CR was not profiled through a great shock. The influence of the past behaviour of consumers and the reactions arising from the adaptation to the existing transformation and market conditions caused some oscillation with a modest, and later with a considerable rise. The behaviour of the typical or average consumer did not lead to the consensus with the hypothesis of proportionality in the development of consumption and income. Also the hypothesis that consumption remains at the same level, when prices rise, was not accepted. From the parameters of equation the conclusion can be made that the consumers (in accordance with the principle of the monetary illusion) increased their expenditures.