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Consumption and Capital Mobility in the Nordic Countries

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  • Lindberg, Sara

    (Department of Economics)

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    Abstract

    I use a consumption-based test to examine the importance of income constraints and the degree of capital mobility across the Nordic countries over the period 1968-96. In particular, I explore the effects of financial deregulation of the 1980s. The estimating equation is derived along the lines of Bayoumi and MacDonald (1995). The results indicate that Nordic financial markets are highly integrated, but that the consumption behavior of a significant part of the Nordic population is constrained by income. There is no evidence that financial deregulation altered the consumption behavior of households or increased the degree of capital mobility across countries.

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    Bibliographic Info

    Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1999:6.

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    Length: 26 pages
    Date of creation: 10 Mar 1999
    Date of revision:
    Handle: RePEc:hhs:uunewp:1999_006

    Contact details of provider:
    Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
    Phone: + 46 18 471 25 00
    Fax: + 46 18 471 14 78
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    Web page: http://www.nek.uu.se/
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    Keywords: Consumer behavior; international capital mobility; financial deregulation;

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    9. Tesar, Linda L., 1995. "Evaluating the gains from international risksharing," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 42(1), pages 95-143, June.
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    17. Maurice Obstfeld, 1994. "Are Industrial-Country Consumption Risks Globally Diversified?," NBER Working Papers 4308, National Bureau of Economic Research, Inc.
    18. Flavin, Marjorie A, 1981. "The Adjustment of Consumption to Changing Expectations about Future Income," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 974-1009, October.
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    20. Agell, Jonas & Berg, Lennart, 1996. " Does Financial Deregulation Cause a Consumption Boom?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(4), pages 579-601, December.
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