9th Seminar of RSG «Estimation of the Impact of Macroshocks on Socio-Economic Processes in the Regions of Russia»

The ninth seminar of our research and study group was held on June 20.

Speaker: Min Gyu Kim, 4th year bachelor student of FES
Presentation: «Changes in the Structure of Russian Households Consumer Spending Due to Macroeconomic Shocks: Regional Aspect»

Abstract
The paper examines the change in the structure of consumer spending of households of the Russian Federation by region during periods of macro-economic shocks, as well as the impact of this change on the accuracy of calculating the consumer price index. Data from the Federal State Statistics Service on the consumer price index and the structure of household expenditures will be used to conduct the study. First, an analysis of the impact of shocks on the appearance of the difference between official inflation and inflation calculated by replacing the base weights with the weights of the shock period will be carried out. Then the analysis of the factors influencing the change in the structure of household consumer spending will be carried out. According to the results of the study, it turned out that the change in the structure of household spending affects the appearance of a difference between official inflation and inflation calculated using the values of the shock period. An underestimation and overestimation of the inflation indicator was found. During the regression analysis of the consumption structure, it was possible to find factors affecting the consumption structure, except for household income, since the importance of income has already been considered by other researchers in a large number of papers, and the difference in the sensitivity of poor and rich regions to macroeconomic shocks has also been found and investigated. The results of the study can help various government agencies to conduct their policies more effectively.

Link for the seminar recording.