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Does The Keynesian Absolute Income Hypothesis Exist in Pakistan?

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  • Shahbaz, Muhammad
  • Nawaz, Kishwer
  • AROURI, Mohamed El Hedi
  • Teulon, Frédéric

Abstract

The present paper contributes in existing economic literature by investigating the validation of the Keynesian Absolute Income hypothesis in Pakistan by applying the ARDL approach to cointegration. The findings of this paper indicate the validation of the Keynesian absolute income hypothesis in Pakistan, where public savings and financial development add in private savings. This study opens up new insights for government to improve the level of private savings.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47923.

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Date of creation: 01 Jul 2013
Date of revision: 01 Jul 2013
Handle: RePEc:pra:mprapa:47923

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Keywords: Private savings; Co-integration; Pakistan;

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