Ming Au, Alan KaiYeung, Matthew C. H.2018-07-112018-07-112018-04Theoretical Economics Letters, 2018, 8, 814-8192162-2086https://doi.org/10.4236/tel.2018.85057http://hdl.handle.net/123456789/1788The study uses the cointegration and common cycle analysis to test whether there are short-run and long-run co-movement relationships between incomes and varies consumption expenditure variables. The analysis aims to detect the long-run co-movements between income and five types of consumption variables, which provides supporting evidence for the common brief that income drives consumption in the long-run. In addition, the analysis also attempts to detect if there are short-run co-movements between income and consumption.enCommon CyclesCommon FeaturesCointegrationConsumers’ ExpenditureArticle