Prague Economic Papers 2021, 30(2):133-155 | DOI: 10.18267/j.pep.751

Analysis of the Status Quo Behavioural Concept During the Global Economic Crisis

Anton Vaskovskyi ORCID...a
a University of Economics, Prague, Faculty of Finance and Accounting, Prague, Czech Republic

The objective of this paper is to examine one of the essential behavioural concepts - the 'status quo bias' - on the available macroeconomic data. The recent global economic crisis has provided a valuable opportunity for analysing the concept and ensured that relevant and sufficient inputs for such academic research are available. Specifically, to study the 'status quo bias', this paper studies the relation between consumption and income before and after the 2008 economic crisis in a selected country. As such, this study attempts to provide answers to such questions as: How strongly is consumption dependent on income prior to and after the crisis? What are the forces behind consumption during the assessed period - income or existing quality of living? What conclusions can be drawn for public finance from the analysis? The findings indicate that the 'status quo bias' behavioural concept could be confirmed based on the tested macroeconomic data, and possible implications for public finance are presented as well.

Keywords: Behavioural economics, status quo, final consumption expenditure of house-holds, disposable income, public finance, real interest rate, real effective exchange rate, co-integration analysis, ADL model
JEL classification: D12, E71, G40, H31

Received: October 21, 2018; Revised: March 4, 2020; Accepted: April 29, 2020; Prepublished online: September 9, 2020; Published: April 14, 2021  Show citation

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Vaskovskyi, A. (2021). Analysis of the Status Quo Behavioural Concept During the Global Economic Crisis. Prague Economic Papers, 30(2), 133-155. doi: 10.18267/j.pep.751
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