Fiscal Policy and Consumer Confidence: A Survey-Based Study of Albania
Fiscal Policy and Consumer Confidence: A Survey-Based Study of Albania

Author(s): Ardita Hykaj
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Economic policy, Public Finances, Fiscal Politics / Budgeting, Accounting - Business Administration, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: fiscal policy; consumer confidence; taxation; public expenditure; Albania
Summary/Abstract: Fiscal policy is a crucial determinant of consumer expectations and household spending behavior, particularly in emerging economies such as Albania, where economic stability is closely tied to public trust in government measures. The research examines the interaction between the key instruments of fiscal policy, specifically taxation, public expenditure, and fiscal incentives, and consumer confidence within the Albanian economy. Using a survey-based methodology, the research collects primary data through questionnaires administered to Albanian households, aiming to capture their perceptions of fiscal measures and their impact on consumption and saving decisions. The study addresses three central questions: (1) How do Albanian consumers perceive the role of fiscal policy in ensuring economic stability? (2) To what extent do taxation and government spending influence household consumption patterns? (3) What are the expectations of Albanian consumers regarding the improvement of fiscal governance in the context of EU integration? The findings are expected to contribute to the literature by providing empirical evidence on the fiscal policy–consumer confidence nexus in a small, transitioning economy. From a policy-making perspective, the study offers practical recommendations for enhancing fiscal governance, strengthening consumer trust, and supporting sustainable growth in Albania.

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