SIMULTANEOUS EQUATIONS MODEL USED IN STUDYING THE ANALYSIS ON HOUSEHOLD FINAL CONSUMPTION

This paper presents an analysis on certain problems concerning household final consumption. In this paper, starting with a series of hypothesis and economic relations, we will define a simultaneous equations model, which will analyze the household final consumption. This model will consist of equations that follow the sociological behavior of the population, other will present the financial behavior and last but not least, identity equations (equilibrium equations). The model was developed centering the household final consumption and it started with an equation defining the consumption behavior, leading to the analysis of every factor, using other economic and econometric relations. The system`s equation parameters were estimated using quarterly data series, that were adjusted using TRAMO/SEATS, method based on ARIMA models. The estimation for equation parameters was achieved using procedures implemented in EViews.