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Myopia, Liquidity Constraints, and Aggregate Consumption: The Case of Greece

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  • Konstantinos Drakos

    (Department of Economics, University of Essex)

Abstract

In this paper we investigate the behaviour of aggregate consumption in Greece. In particular, we document the empirical failure of the Life-Cycle/Permanent Income Hypotheses. The empirical findings imply that this failure is due to the presence of Liquidity Constraints rather than Myopia.

Suggested Citation

  • Konstantinos Drakos, 2002. "Myopia, Liquidity Constraints, and Aggregate Consumption: The Case of Greece," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(1), pages 97-105, June.
    • Handle: RePEc:jed:journl:v:27:y:2002:i:1:p:97-105
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    References listed on IDEAS

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    Cited by:

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    2. Chance Mwabutwa & Manoel Bittencourt & Nicola Viegi, 2012. "Financial Reforms and Consumption Behaviour in Malawi," Working Papers 306, Economic Research Southern Africa.
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    4. Salman Ahmed Shaikh & Mohd Adib Ismail & Abdul Ghafar Ismail & Shahida Shahimi & Muhammad Hakimi Mohd. Shafiai, 2018. "An Empirical Investigation Of Consumption Behaviour In Selected Oic Countries," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(1), pages 101-116, August.
    5. Epper, Thomas, 2015. "Income Expectations, Limited Liquidity, and Anomalies in Intertemporal Choice," Economics Working Paper Series 1519, University of St. Gallen, School of Economics and Political Science.

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