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Separability and Aggregate Shocks in the Life-Cycle Model of Consumption: Evidence from Spain

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  • Collado, M Dolores

Abstract

The purpose of this paper is to test the life-cycle permanent income hypothesis using an unbalanced panel from the Spanish family expenditure survey. The author's model accounts for aggregate shocks and nonseparability in the Euler equation among consumption goods, contrary to most of the literature in this area. Her results do not indicate excess sensitivity of consumption growth to income. Copyright 1998 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 60 (1998)
Issue (Month): 2 (May)
Pages: 227-47

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Handle: RePEc:bla:obuest:v:60:y:1998:i:2:p:227-47

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Cited by:
  1. Casado, Jose Maria & Alvarez-Cuadrado, Francisco & Labeaga, Jose Maria & Sutthiphisal, Dhanoos, 2012. "Envy and habits: Panel data estimates of interdependent preferences," MERIT Working Papers 054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. M. Dolores Collado & Lilia Maliar & Serguei Maliar, 2003. "Quasi-Geometric Consumers: Panel Data Evidence," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2003-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Mette Christensen, 2007. "Integrability of demand accounting for unobservable heterogeneity: a test on panel data," IFS Working Papers, Institute for Fiscal Studies W07/14, Institute for Fiscal Studies.

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