Student: Bryan Harmon
Mentor: Khawaja Mamun
This study considers the factors that impact personal consumption expenditures in the United States. Although the main focus is to evaluate whether or not the level of disposable personal income has a significant impact on consumer spending, other factors such as the consumer confidence index, CPI based inflation, aggregate personal savings, the prime interest rate, and consumer credit outstanding, were included in order to evaluate their relative impacts on personal consumption. Through the use of econometric regression techniques, empirical results were generated which support the theory that the aggregate level of disposable personal income does indeed have the largest impact on personal consumption expenditures in the United States.