Consumption Function Of Fiji
This paper uses both the cointegration and a variant of the general to specific approaches to develop a consumption function for Fiji with data from 1970 to 2002. We found that when the specification of the consumption function is reparametrized, the simpler (general to specific) approach gives estimates comparable to the cointegration and ECM approach. We recommend both approaches for developing specifications of the structural equations in econometric models in the Cowles Foundation tradition, which are now attracting some renewed interest.
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Volume (Year): IV (2005)
Issue (Month): 3 (May)
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