Function Analysis of Household Consumption in South Sulawesi Province (Case Study of Makassar, Gowa, Maros and Pare-Pare City)

Abstract

This study aims to determine the effect of permanent income and temporary income on people's consumption patterns in four regencies and cities in South Sulawesi Province (Makassar, Gowa, Maros, and Pare-Pare). By using the OLS (Ordinary Least Square )method and collecting data primarily by conducting interviews with two hundred community respondents, both workers from several professional fields, using a random sampling method. The results of this study indicate that permanent income has a positive and significant effect on people's consumption in four urban districts in South Sulawesi Province. However, temporary income does not have a significant effect on the level of public consumption in four regencies and cities in South Sulawesi Province. The simultaneous influence is believed that the level of consumption is still influenced by several other variables outside of this study, referring to the small F test value or only forty percent of the independent variables affecting the dependent variable.