Aggregate Consumer's Expenditure and Income
The following question is analyzed: under what circumstances can one a stable (i.e., time invariant) functional relationship which links aggregate consumption in period t with aggregate income in period t and another "determinants" of consumtion that refer to periods prior to period t and can be derived from observable distributions of households' characteristics ? The basic hypothesis on which our model is built is the hypothes of a "structurally stable" evolution. This hypothesis has good empirical support. The proposed dynamic model of consumer's expenditure implies implies the observed regularities of aggregate consumption and income data such as the high linear association of aggregate income and consumption for short-run time series. The compatibility of our model with empirical data and its predictive power is discussed using time- series of cross-section data, the U.K. Family Expenditure Survey from 1968 to 84.
|Length:||40 pages plus pictures|
|Date of creation:||Oct 1994|
|Note:||This paper consists of two parts, the first is the written part and the second are the graphs which belong to the written part and without which the written part is not understandable. The graph part ist available under the URL ftp://hannibal.econ3.uni-bonn.de/sfb- papers/with2/sfb_a456/ It will be needed a free space of approx. 20 MByte on the harddisk. If there occur any problems please don't hesitate to contact us via e-mail firstname.lastname@example.org .|
|Contact details of provider:|| Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany|
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- HÄRDLE, Wolfgang & JERISON, Michael, "undated".
"Cross section Engel curves over time,"
CORE Discussion Papers RP
991, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wolfgang HÄRDLE & Michael JERISON, 1991. "Cross section Engel Curves over Time," Discussion Papers (REL - Recherches Economiques de Louvain) 1991045, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Haerdle,Wolfgang Jerison,Michael, 1988. "Cross section Engel curves over time," Discussion Paper Serie A 160, University of Bonn, Germany.
- Hardle, W. & Jerison, M., 1990. "Cross section Engel curves over time," CORE Discussion Papers 1990016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
- Simon Kuznets, 1942. "Uses of National Income in Peace and War," NBER Chapters,in: Uses of National Income in Peace and War, pages 1-45 National Bureau of Economic Research, Inc.
- Simon Kuznets, 1942. "Uses of National Income in Peace and War," NBER Books, National Bureau of Economic Research, Inc, number kuzn42-1, November.
- Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-692, December.
- Maddison, Angus, 1992. " A Long-Run Perspective on Saving," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(2), pages 181-196.
- Maddison, A., 1991. "A Long Run Perspective on Saving," Papers 443, Groningen State, Institute of Economic Research-.
- Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, November.
- Spanos, Aris, 1989. "Early Empirical Findings on the Consumption Function, Stylized Facts or Fiction: A Retrospective View," Oxford Economic Papers, Oxford University Press, vol. 41(1), pages 150-169, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:bon:bonsfa:456. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (BGSE Office)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.