Pattern Analysis of Government Policies Effect on Household Spending

In this paper an attempt has been made to analyse the effect of government spending, government revenue and household spending on each. For this purpose of research, three OECD member countries have considered-France, Korea and USA. The government spending, government revenue and household spending have been analysed to establish a relationship and to see as to see who the driver is and who is the driven. The driver and the driven here could either be one of the three variables i.e. government revenue, government spending or household spending. The results of Johansen Co-integration Test and Granger Causality Test will help us understand the sensitivity of household expenditure towards the changes in fiscal policies.