This paper attempts to investigate the co-integration relationship between consumption, income and GDP per capita (as a

proxy
of the level of standard of living) in time-series cross-section data. To conduct this analysis, we have applied tests to
verify if the
time series are non-stationary and co-integrated. The panel data covers a large sample formed from 79 countries, divided
in three
categories depending on their income level – low, middle and high. The study regarded annual observations for a period
of 31
years, from 1980 to 2010.

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Indonesia,” retreived 19 August 2009, from
http://www.mandalaair.com/docs/press/cf8ef8bf-82fc-4c26-9203-91ccace5aa49.pdf
Martin-Valencia, F.A. (2000). Measuring Perceived Service Quality in the Urban Public
Transport: Methodology and Relationship of Marketing Variables. Doctoral dissertation,
University of Seville, Spain O’Guinn, A., & Semenik. (2006). Advertising and Integrated Brand
Promotion, 4th ed. Mason, OH: Thomson Sekaran, U. (2003). Research Methods of Business: A
Skill Building Approach, 4th ed. New York, NY: John Wiley & Sons, Inc. Selnes, FYoo, B.,
Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix Elements and Brand
Equity. Journal of the Academy of Marketing Science, 28 (2), 195-211 Zeithaml, V.A., Bitner,
M.J., & Gremler, D.D. (2006). Airlines is Awarded by the PR Society of Indonesia,” retreived
19 August 2009, from http://www.mandalaair.com/docs/press/cf8ef8bf-82fc-4c26-9203-
91ccace5aa49.pdf Martin-Valencia, F.A. (2000). Measuring Perceived Service Quality in the
Urban Public Transport: Methodology and Relationship of Marketing Variables. Doctoral
dissertation, University of Seville, Spain O’Guinn, A., & Semenik. (2006). Advertising and
Integrated Brand Promotion, 4th ed. Mason, OH: Thomson Sekaran, U. (2003). Research
Methods of Business: A Skill Building Approach, 4th ed. New York, NY: John Wiley & Sons, Inc.
Selnes, FYoo, B., Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix
Elements and Brand Equity. Journal of the Academy of Marketing Science, 28 (2), 195-211
Zeithaml, V.A., Bitner, M.J., & Gremler, D.D. (2006). Airlines is Awarded by the PR Society of
Indonesia,” retreived 19 August 2009, from
http://www.mandalaair.com/docs/press/cf8ef8bf-82fc-4c26-9203-91ccace5aa49.pdf
Martin-Valencia, F.A. (2000). Measuring Perceived Service Quality in the Urban Public
Transport: Methodology and Relationship of Marketing Variables. Doctoral dissertation,
University of Seville, Spain O’Guinn, A., & Semenik. (2006). Advertising and Integrated Brand
Promotion, 4th ed. Mason, OH: Thomson Sekaran, U. (2003). Research Methods of Business: A
Skill Building Approach, 4th ed. New York, NY: John Wiley & Sons, Inc. Selnes, FYoo, B.,
Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix Elements and Brand
Equity. Journal of the Academy of Marketing Science, 28 (2), 195-211 Zeithaml, V.A., Bitner,
M.J., & Gremler, D.D. (2006). Airlines is Awarded by the PR Society of Indonesia,” retreived
19 August 2009, from http://www.mandalaair.com/docs/press/cf8ef8bf-82fc-4c26-9203-
91ccace5aa49.pdf Martin-Valencia, F.A. (2000). Measuring Perceived Service Quality in the
Urban Public Transport: Methodology and Relationship of Marketing Variables. Doctoral
dissertation, University of Seville, Spain O’Guinn, A., & Semenik. (2006). Advertising and
Integrated Brand Promotion, 4th ed. Mason, OH: Thomson Sekaran, U. (2003). Research
Methods of Business: A Skill Building Approach, 4th ed. New York, NY: John Wiley & Sons, Inc.
Selnes, FYoo, B., Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix
Elements and Brand Equity. Journal of the Academy of Marketing Science, 28 (2), 195-211
Zeithaml, V.A., Bitner, M.J., & Gremler, D.D. (2006). Services Marketing: Integrating
Customer Focus across the Firm, 4th ed. New York, NY: McGraw Hill. (1993). An Examination