Nexus between Consumption, Income and Price Changes: Asymmetric Evidence from NARDL Mode

Previous research has primarily examined the link between price, income, and consumer spending using linear regression models. On other hand, latest evidence shows an asymmetric among economic financial variables. We contribute to literature by employing a novel technique known as ARDL model. This approach is used investigate impact of favorable unfavorable changes in income prices on household consumption. The results show that higher substantial beneficial effect expenditures short term long term. fall no spending. Moreover, for most developing countries, price adjustments have negligible expenditures. Our findings suggest implementing same policy initiatives across periods rising falling may result potential losses.JEL Classification: E31, F31, C22