Macroeconomic policy volatility and household consumption in Africa

Consequences of debilitated macroeconomic policies are unhealthy for household consumption in most African countries. With inflation, the market value household’s disposable income is eroded, which leads to lower bundle and subsequently, hardship. Despite magnitude significance final expenditures Africa, cause–effect, evidence-based policy options policy-induced remain underexplored less understood. To establish a clear line thought on volatility-household relations we assigned numerical weights output elasticities volatilities twenty (20) countries using panel structural vector auto-regressive (PSVAR) estimation technique. We took cognisance idiosyncratic standard shocks responses. allowed thoroughly ranked cross-sectional variances dynamic elasticities. Findings reveal that induce significant changes expenditure Africa. Policy implications were discussed.