This paper analyzes a systems approach to employment effects by formulating CONDELES, the aggregate consumption function associated with Durables in the Extended Linear Expenditure System. The complete system, with disposable income, prices, the real interest rate and lagged stocks is fitted to quarterly Australian data using full-information maximum likelihood. The results are mixed. Stable, significant estimates of subsistence parameters, marginal budget shares and the marginal propensity to consume are obtained. On the negative side, implausibly low marginal budget shares were found for durables and high positive serial correlation in the residuals remained.
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.
Publisher Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number
349.