An Empirical Study on Markowitz Hypothesis-Income and Consumption Relationship

Abstract

The study exhibits income &consumption expenditure relationship and empirically studied Markowitz Hypothesis. The Study about organisation, groups as well as individuals linked with purchase of goods and services, uses and disposal of the same is Consumer Behaviour. Income is a most important determinant of consumption. The data is collected from secondary source of income and expenditure from 1960-2020 in India. Analysis is done by using linear trend line and Correlation. The result of the study validates Markowitz hypothesis that change in income changes consumption expenditure but not beyond certain level due to diminishing marginal utility.