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Defining Consumption Behavior in a Multi-Country Model Author info | Abstract | Publisher info | Download info | Related research | Statistics Olivier Allais
Loic Cadiou
Stephane Dees
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This paper presents the consumption function of Marmotte, the multi-country model of the CEPII-CEPREMAP, and its estimation for the 17 countries of the model. The consumption function is based on the permanent income model. We have extended this model to account for the presence of habit formation and liquidity constraints in the consumption behaviors. The results obtained give us reasonable values for the consumption function of Marmotte. Differences across the 17 countries concern only the habit behaviors. However, these differences are not large enough to imply significant differences in terms of consumption responses to shocks in the simulations of the model.
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Paper provided by CEPII research center in its series Working Papers with number
2001-02.
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Date of creation: Feb 2001Date of revision:
Handle: RePEc:cii:cepidt:2001-02Contact details of provider: Postal: 9 rue Georges Pitard, 75740 Paris Cedex 15 Phone: 33 01 53 68 55 00 Fax: 33 01 53 68 55 01 Web page: http://www.cepii.fr More information through EDIRC
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Keywords: Consumption ; habit formation ; liquidity constraints ; generalized method of moments ; Other versions of this item:
Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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"Evolutions demographiques et marche du travail : des liens complexes parfois contradictoires ,"
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