IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Consumo y Dinero de Personas en Chile

Listed author(s):
  • Tobias Broer

We estimate a cointegrated VAR of consumption, household money and their determinants in Chile.We find two long-run relations that can be specified as a classic money-demand equation and aconsumption equation that is homogenous in disposable income. We find that the household money overhang has indeed a significant effect on future consumption, while consumption deviations do not affect money holdings. The dynamic properties of the system, namely Granger causality and the weak exogeneity criteria developed in Urbain (1992), allow the estimation of a marginal system for consumption and money as well as conditional forecasts on exogenous paths of income, interest rates, and inflation. Our system tracks the in-sample dynamics of consumption well, and better than other consumption equations estimated in Chile without money in the past. And out of sample tests show that our model has better forecast performance than univariate models, or systems without money. However, this does not hold for larger horizons

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 275.

in new window

Date of creation: Dec 2004
Handle: RePEc:chb:bcchwp:275
Contact details of provider: Postal:
Casilla No967, Santiago

Phone: (562) 670 2000
Fax: (562) 698 4847
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:275. 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: (Claudio Sepulveda)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.