The Effect of Income Inequality and Relative Poverty line on Durable Goods Purchasing Power

The aim of this study was to evaluate the spatial effect of income inequality, relative poverty, real per capita income growth, unemployment, real exchange rate and real interest rate on real purchasing power of durable goods using the generalized SAR-GMM-DPD spatial self-regression torque model with two-stage coefficients. Arellano-Bover / Bundell-Bond is a random dynamic band between provinces of Iran in the period 2006-2017. The results show that according to Dosenbury's theory of consumption theory, durable goods have a broken demand function; Thus, the first interval of the dependent variable with a coefficient of 0.009 has a positive effect on the purchasing power of durable goods. The first spatial interval of SAR is also negative and significant -0.007 which indicates the negative spatial dependence between the provinces of Iran, ie the effects of independent variables on the dependent variable have indirect spatial and geographical effects. Income inequality with a coefficient of -0.43 has a negative effect on the purchasing power of durable goods of households. The relative poverty line with a coefficient of -0.06 has a negative effect on purchasing power, and as the relative poverty line moves to the upper deciles of income, the purchasing power of durable goods decreases.