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Annual Consumption Functions: A Scottish-UK Comparison, 1971--1985

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Author Info
Darryl Holden
Peter McGregor

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Abstract

HOLDEN D. R. and McgREGOR P. G. (1990) Annual consumption functions: a Scottish-UK comparison, 1971--1985, Reg. Studies 24, 247--259. This paper investigates the performance of a number of recently proposed 'consumption functions’ using annual Scottish and UK data for the period 1971 to 1985. Whilst the exercise is 'atheoretical’ in the sense that no attempt is made to tie estimated models to specific theories, the influences considered do reflect an underlying conviction that a full understanding of consumption functions ultimately necessitates an integrated framework for modelling household behaviour. In this context a number of recent models may be treated as non-competing and separate investigation of non-durable and durable expenditures may be helpful in evaluating competing explanations of recent consumption behaviour. Data coherent models of non-durable expenditures are obtained, although such specifications proved elusive for durables. Overall, there was some supporting evidence for the intuitive systems-perspective which motivated the analysis. HOLDEN D. R. et McgREGOR P. G. (1990) Des fonctions de consommation annuelles: l'Ecosse par rapport au Royaume-Uni de 1971 à 1985, Reg. Studie 24, 247--259. A partir des données annuelles concernant l'Ecosse et le Royaume-Uni sur la période de 1971 à 1985 cet article examine la performance d'un nombre de fonctions de consommation récemment proposées. Alors que l'étude reste 'non-théorique’ dans la mesure où on n'a pas l'intention de rapporter des modèles estimés aux théories particulières, il n'en reste pas moins que les influences considerées reflètent l'opinion sous-jacente qu'une compréhension globale des fonctions de consommation exige à terme un cadre intégré destiné à la modélisation du comportement des ménages. Dans ce contexte on peut considérer un nombre des modèles récents comme non-concurrentiels, et des examens indépendants des dépenses durables et non-durables pourraient aider une évaluation des explications alternatives du comportement récent de la consommation. On construit des modèles des dépenses non-durables dont les données sont cohérentes, bien que de telles caractéristiques n'étaient pas disponibles pour les dépenses durables. Toute réflexion faite il y avait des preuves qui venaient à l'appui de la perspective intuitive de systèmes qui avait incité l'analyse. HOLDEN D. R. und McgREGOR P. G. (1990) Jährliche Verbrauchsfunktion: ein Vergleich zwischen Schottland und dem Vereinigten Königreich für den Zeitraum 1971--85, Reg. Studies 24, 247--259. Dieser Aufsatz untersucht das Verhalten einer Anzahl kürzlich vorgeschlagener "Verbrauchsfunktionen” für den Zeitraum 1971--1985 unter Verwendung von jährlichen Angaben für Schottland und das Vereinigte Königreich. Obschon die Anwendung als atheoretisch zu bezeichnen ist insofern, als kein Versuch unternommen wird, die geschätzten Modelle spezifischen Theorien zuzuordnen, spiegelt die Auswahl der Einflüsse, die in Betracht bezogen werden, doch eine zugrunde liegende Überzeugung wider, dass das volle Verständnis der Verbrauchsfunktionen letzten Endes eines einheitlichen Systems zur Erstellung eines Modells des Haushaltverhaltens bedarf. In diesem Zusammenhang können eine Anzahl neuerer Modelle als nicht konkurrierend betrachtet werden, und separate Untersuchungen von Ausgaben für Verbrauchsgüter wurden beschafft, obwohl sich solche Spezifikationen für Gebrauchsgüter als schwer fassbar erwiesen. Insgesamt ergaben sich durchaus bekräftigende Beweise für die intuitive Systemsperspektive, die Beweggrund für die Analyse waren.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 24 (1990)
Issue (Month): 3 (June)
Pages: 247-259
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Handle: RePEc:taf:regstd:v:24:y:1990:i:3:p:247-259

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Related research
Keywords: Consumption functions; Intuitive systems perspective; Non-nested tests;

References listed on IDEAS
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  1. Bollerslev, Tim & Hylleberg, Svend, 1985. "A Note on the Relation between Consumers' Expenditure and Income in the United Kingdom," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 47(2), pages 153-70, May.
  2. William C. Brainard & James Tobin, 1968. "Pitfalls in Financial Model-Building," Cowles Foundation Discussion Papers 244, Cowles Foundation, Yale University. [Downloadable!]
  3. Nadiri, M Ishaq & Rosen, Sherwin, 1969. "Interrelated Factor Demand Functions," American Economic Review, American Economic Association, vol. 59(4), pages 457-71, Part I Se. [Downloadable!] (restricted)
  4. Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-92, December. [Downloadable!] (restricted)
  5. Hendry, David F, 1983. "Econometric Modelling: The "Consumption Function" in Retrospect," Scottish Journal of Political Economy, Scottish Economic Society, vol. 30(3), pages 193-220, November.
  6. Davidson, James E. H. & Hendry, David F., 1981. "Interpreting econometric evidence : The behaviour of consumers' expenditure in the UK," European Economic Review, Elsevier, vol. 16(1), pages 177-192. [Downloadable!] (restricted)
  7. Deaton, Angus S, 1977. "Involuntary Saving through Unanticipated Inflation," American Economic Review, American Economic Association, vol. 67(5), pages 899-910, December. [Downloadable!] (restricted)
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