Nigerian consumption patterns defy traditional economic theories, challenging future predictions.
The article discusses how consumption patterns in Nigeria are influenced by previous income and consumption levels. The researchers used Nigerian data from 1981-2012 and found that previous incomes may not significantly affect current consumption, but previous consumption levels do. Consumers in Nigeria may decrease current consumption based on last year's levels, but increase it based on the last two years. This suggests that predicting consumption in Nigeria is challenging. The government can impact aggregate demand by implementing permanent income and tax policies.