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Cross Country Evidence on Consumption Persistence

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  • J. M. Belbute
  • A. B. Caleiro

Abstract

The main focus of this article is the detection and measurement of the level of persistence in aggregate and disaggregate private consumption in Italy, Norway and the United Kingdom. Using a non-parametric methodology, we conclude that the presence of a significant degree of persistence in aggregate and disaggregate consumption in those three countries cannot be rejected. These results are essential from a policy point of view. Persistence in consumption does exist and cannot be ignored, whether the goal is to stabilize the level of output via consumption or to boost output via long-lasting increases in consumption. One instrument that might be useful in addressing this issue is interest rates.

Suggested Citation

  • J. M. Belbute & A. B. Caleiro, 2013. "Cross Country Evidence on Consumption Persistence," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(2), pages 440-440.
    • Handle: RePEc:ers:ijfirm:v:3:y:2013:i:2:p:440
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    References listed on IDEAS

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    Cited by:

    1. Francesca Marino, 2013. "The Italian productivity slowdown in a Real Business Cycle perspective," SERIES 0046, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Apr 2013.

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    More about this item

    Keywords

    Consumption; Persistence; Italy; Norway; the United Kingdom;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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