The aggregate consumption puzzle in Singapore
AbstractWe draw attention to an apparent puzzle in the aggregate consumption behaviour of Singaporeans. In stark contrast to the rest of the world, the average propensity to consume has plummeted to a record low of two-fifths of income in 2000 leaving the economy without a good built-in stabilizer. This phenomenon is a notable departure from the stable long-run equilibrium relationship between consumption, disposable income and wealth observed elsewhere. The explanation of this puzzle is the main focus of the paper but we also draw attention to some policy measures that may reverse the process
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 15 (2004)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/asieco
Other versions of this item:
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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