The Relationship Between Consumption, Income And Wealth In Hong Kong
AbstractThis paper estimates a consumption function for Hong Kong along the lines of the standard life-cycle model. I find a stable relationship between consumption, labour income and wealth with plausible long-run estimates of the implied marginal propensity to consume out of income and wealth. The marginal propensity to consume out of housing wealth is estimated to be lower than in other industrialized economies, which is consistent with a relatively uneven distribution of wealth in Hong Kong. Arithmetically, the decline in housing wealth in Hong Kong since 1997 can more than account for the weakness of consumption since then. Copyright 2005 Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Pacific Economic Review.
Volume (Year): 10 (2005)
Issue (Month): 2 (06)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X
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- Noorhaslinda Kulub Abd. Rashid & Aslina Nasir & Nik Hashim Nik Mustapha & Nik Fuad Kamil, 2011. "Analysis Of Income And Expenditure Of Households In The East Coast Of Peninsular Malaysia," Journal of Global Business and Economics, Global Research Agency, vol. 2(1), pages 59-72, January.
- Hong Kong Monetary Authority, 2008. "The housing market channel of the monetary transmission mechanism in Hong Kong," BIS Papers chapters, in: Bank for International Settlements (ed.), Transmission mechanisms for monetary policy in emerging market economies, volume 35, pages 221-234 Bank for International Settlements.
- James Yetman, 2009. "Hong Kong Consumer Prices are Flexible," Working Papers 052009, Hong Kong Institute for Monetary Research.
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