Demand management policies, demographic structure and consumption pattern in Nigeria

The study examines the relationship between demographic structures, consumption patterns, and demand management policies in Nigeria by adopting an Autoregressive Distributed Lag model, using annual data from 1981 to 2015. The results show that demand management policies influencene consumption behavior of different demographic groups. Specifically, it reveals a significant relationship between government expenditure and consumption pattern of various population groups in the country. This implies that adjustments in government spending can be used to control the direction of aggregate demand. Exchange rate management policy, for instance, was only significant in the determination of the consumption expenditure of the aged population, suggesting its limitations in influencing expenditure switching across other demographics. Hence, appropriate and effective monetary policies that take into cognizance changes in Nigeria's demographic structure could be designed to complement fiscal policies in promoting expenditure management.

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