Rugacheva A., Fokina P. Consumer behavior in the Republic of Karelia: need for state regulation // Studia Humanitatis Borealis. 2016. Vol. 2. № 2. P. 48‒55.



Issue № 2

ECONOMICS

Consumer behavior in the Republic of Karelia: need for state regulation

Rugacheva
   Anzhela
PhD in Economics,
Associate Professor,
Petrozavodsk State University, Faculty of Economics,
Petrozavodsk, Russia, rav@sampo.ru
Fokina
   Polina
2nd year master student of Magistracy,
Petrozavodsk State University, Faculty of Economics,
Petrozavodsk, Russia, polina-fokina@inbox.ru
Ключевые слова:
Consumer behavior
aggregate demand
government regulation of the economy
Аннотация: The economy of the Republic of Karelia is in the difficult situation in last years. The volume index of gross regional product and the volume index of investments in fixed capital are steadily decreasing, the number of unemployed people is growing, the volume index of retail trade turnover has unfavorable trend according to the information from Kareliastat. It all indicates economic crisis. Scientists of the Higher School of Economic have assigned the Republic of Karelia to the group of regions with low budgetary security, high level of debt load and medium and big budget deficit. All this puts on the agenda the search for ways to increase the gross regional product and revenues of regional and local budgets. Consumption management is the complicated system which helps to achieve growth of aggregate demand and production volume, overcome the crisis and stimulate the economic growth. The government has a wide variety of ways to influence consumer behavior, because it has a huge range of economic, political, ideological and administrative resources. Government regulation affects households and their financial decision-making through the key interest rate, the size of social payments, determination of the minimum wage and other tools. Financial decision-making is conditioned by the size and dynamics of disposable income and other factors among which policy of state regulation plays a significant role.

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Is passed for the press: 04 december 2017 year

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