The sufficiency of household incomes: Estimation and economic interpretation for their financial stability

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The household financial activities prove that their incomes determine the levels of livelihood (Skrynkovsky & Leskiv, 2015; Israr et al., 2014) and stability (Mohr & Wagner, 2013). In this paper, we will take the view that the financial stability of households is the ability to ensure an appropriate level of livelihood by the available level of income in the face of influence factors. As a result, the study on the sufficiency of household incomes is relevant when estimating their financial stability. The purpose of the research is to develop indicators for estimating the sufficiency of household incomes and economic interpretation obtained results for their financial stability. According to the purpose, indicators for estimating the sufficiency of household incomes are proposed and made economic interpretations ones. In the work process analysis is used as a general scientific method of theoretical knowledge, and comparison and measurement are used as data research methods. The analysis was conducted to conclude the different trends of income sufficiency by Ukrainian households at the macroeconomic and microeconomic levels in 2001–2020. Moreover, future research needs to use the elements of correlation regression analysis to rank the studied factors by the power of influence.

Keywords: Finances, Stability, Household, Incomes, Macroeconomic, Microeconomic, Sufficiency, Indicators

Authors’ individual contribution: Conceptualization — O.K. and A.S.; Methodology — O.K. and A.S.; Software — A.S.; Validation — O.K., S.K., I.S., and A.S.; Formal Analysis — A.S.; Investigation — S.K. and I.S.; Data Curation — S.K. and I.S.; Writing — Original Draft — O.K. and A.S.; Writing — Review & Editing — O.K., S.K., I.S., and A.S.; Visualization — S.K., I.S., and A.S.; Supervision — O.K. and A.S.; Project Administration — A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D14, D19, G51, G53

Received: 03.09.2023
Accepted: 12.04.2024
Published online: 16.04.2024

How to cite this paper: Kyrylenko, O., Koval, S., Sydor, I., & Sydorchuk, A. (2024). The sufficiency of household incomes: Estimation and economic interpretation for their financial stability. Journal of Governance & Regulation, 13(2), 86–95. https://doi.org/10.22495/jgrv13i2art8