The impact of the Corona pandemic on the family consumption function,

an applied study on the city of Misrata

Abstract

The research aims to investigate the impact of the (Covid-19) pandemic on household consumption using cross-sectional data for a sample of (389) families residing in the city of Misurata, the descriptive statistics approach has been used analyzing the consumption and income data as well as standard experimental approach used to estimating the consumption function model according to the absolute income model, and making a comparison between the family consumption function before and after the pandemic, the results of the descriptive statistical analysis showed a decrease in the average income by 10.97%, and increase In the average consumption of 3.38%, the reason for the decline in the level of income after the Corona pandemic is due to the economic stagnation caused by the Corona pandemic due to quarantine policies and the imposition of many restrictions, while the reasons for the increase in consumption are due to quarantine conditions and the need to store some major commodities in addition to Consumer purchases of medicines and health materials required for quarantine period increased, and the empirical results showed a statistics significant effect of the Corona pandemic on household consumption increasing, as autonomous consumption by 13.8%, and the marginal propensity to consume increased from (0.37) for the estimated consumption function before the Corona pandemic to (0.43), meaning that there is an increase in autonomous consumption of income and the marginal propensity to consume After the Corona pandemic, this means that the Corona pandemic has had effect by increasing of household consumption.