Separability and aggregate shocks in the life-cycle model of consumption: evidence from Spain
AbstractThe purpose of this paper is to test the life-cycle permanent income hypothesis using an unbalanced panel from the Spanish family expenditure survey. Our model accounts for aggregate shocks and non-separability in the Euler equation among consumption goods, contrary to most of the Literature in this area. Our results do not indicate excess sensitivity of consumption growth to income.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/3950.
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Life-cycle model; Separability; Aggregate Shocks; Panel Data;
Other versions of this item:
- Collado, M Dolores, 1998. "Separability and Aggregate Shocks in the Life-Cycle Model of Consumption: Evidence from Spain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(2), pages 227-47, May.
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