IDEAS home Printed from https://ideas.repec.org/a/mth/jsss88/v7y2020i2p135-150.html
   My bibliography  Save this article

Household Consumption and Unconventional Monetary Policy: Insights from a Bayesian SVAR Model

Author

Listed:
  • Ebele AMALI
  • Tersoo Shimonkabir SHITILE

Abstract

This study uses a Bayesian SVAR to demonstrate that movements in household consumption can be explained by expansionary credit easing policy. The latter reflects ongoing heterodox monetary policy regimes in many countries, especially emerging markets and developing economies (EMDEs). Using Nigeria’s data over the period from Q1 1995 to Q4 2018, the empirical analysis reveals that the role of credit easing in the household consumption is not important in Nigeria, as a large part of the variation in household consumption can be explained by shocks to other economic activities. The findings also indicate a rough estimate that the impact threshold of credit easing on household consumption is no more than 2 percent, thus requiring accelerators and accelerator policy to overcome the threshold. Our results suggest the need for a broad-based policy response to fully maximize the positive effect of credit supply shock on private spending and aggregate demand in general.

Suggested Citation

  • Ebele AMALI & Tersoo Shimonkabir SHITILE, 2020. "Household Consumption and Unconventional Monetary Policy: Insights from a Bayesian SVAR Model," Journal of Social Science Studies, Macrothink Institute, vol. 7(2), pages 135-150, December.
    • Handle: RePEc:mth:jsss88:v:7:y:2020:i:2:p:135-150
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/jsss/article/view/17436
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/jsss/article/view/17436
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patricks Ogiji & Tersoo Shimonkabir Shitile & Nuruddeen Usman, 2022. "Estimating asymmetries in monetary policy reaction function: an oil price augmented Taylor type rule for Nigeria under unconventional regime," Economic Change and Restructuring, Springer, vol. 55(3), pages 1655-1672, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:jsss88:v:7:y:2020:i:2:p:135-150. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/jsss .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.