Advanced Search
MyIDEAS: Login

Are there restrictions to consumption smoothing in Latin American countries? Differences between OLS and GLS estimation


Author Info

  • Humberto Carlos Faria Teixeira
  • Joao Victor Issler


We study empirically how close consumption-smoothing models employing present-value relationships fit data for Latin-American countries, either in an open-economy or closed-economy environment. Bivariate VARS are estimated using either individual-system or a joint-system techniques (OLS or GLS - SURE). The latter are more efficient, as is widely known. Interestingly, Wald-Test results for OLS estimates are consistent with consumption smoothing, while GLS are not. However, this last result contradicts previous literature on this issue, which have found that Latin-American countries conform to consumption-smoothing models, with free-capital mobility and no liquidity constraints, which seems odd, given these countries' recent history

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 246.

as in new window
Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:ecm:latm04:246

Contact details of provider:
Phone: 1 212 998 3820
Fax: 1 212 995 4487
Web page:
More information through EDIRC

Related research

Keywords: consumption; SURE; efficiency;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ecm:latm04:246. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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