Private Consumption Expenditure in the Eastern Caribbean Currency Union
AbstractThis paper innovates by being the first to estimate a consumption function of a monetary union as a single entity. It is also the first empirical consumption research on the Eastern Caribbean Currency Union (ECCU). Due to the open nature of these nations it further adds to the literature by examining open economy variables like the terms of trade and the degree of export orientation. The panel dynamic least squares method employed indicates that private spending is primarily driven by income, financial wealth, the interest rate, terms of trade and the degree of export orientation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40932.
Date of creation: 2011
Date of revision:
Consumption function; panel dynamic OLS; monetary union;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
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