Factors of households’ final consumption in the region

The state of the Russian economy is largely determined by the internal consumers’ demand, and its activation can ensure the economy growth. The Vologda Oblast is one of the Russian regions where the problem of stimulating the household final consumption is acute. The significance of the most important internal source of economic growth stimulates the research relevance of the driving forces that determine its dynamics. The aim of the study is to identify factors, affecting the final consumption level of the population in the region. The scientific novelty lies in assessing the meaning of the forces that define the internal consumers’ demand volume in the Vologda Oblast, based on the regression model. The research is based on general scientific methods of comparison, generalization, analysis, synthesis, and econometric modeling. Its information base consists of the works of domestic and foreign economists in the field of methodological and practical issues of final consumption formation, data of the State statistical authorities, and materials of expert research. The author carries out an analysis of the dynamics and structure of the final consumption in the region. Using econometric modeling, the researcher determined that the volume of the household final consumption in most depends on the average salary, as well as the household sector income from business. The article proves that the population’s income growth will contribute to the activation of final consumption, and therefore, it is worth pursuing a policy, aimed at raising of final demand level by increasing salary, and creating conditions for business development. The practical significance of the research is in the fact that the regional authorities can take into account the identified factors that determine the level of household final consumption in the Vologda Oblast, when developing priority areas and adjusting economic policy related to the standard of living.