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Consumption, Saving, Investment, and Unemployment. SVAR Tests of the Effects of Changes in the Consumption-Saving Pattern

Author

Listed:
  • Roberto Bande Ramudo
  • Manuel Fernández Grela
  • Mª Dolores Riveiro García

    (GAME-IDEGA, University of Santiago de Compostela)

Abstract

In this paper we aim to provide information about the transmission mechanism at work between investment and unemployment by looking at the consumption-saving pattern as a determinant of investment behaviour. Our starting hypothesis is that permanent shifts in the consumption-saving pattern will have permanent effects on investment, with subsequent consequences for the unemployment rate. To test this hypothesis we build an SVAR model for the Spanish economy seeking information about the response of the four relevant macroeconomic variables (consumption, saving, investment and unemployment) to simulated shocks imposed on the system.

Suggested Citation

  • Roberto Bande Ramudo & Manuel Fernández Grela & Mª Dolores Riveiro García, 2011. "Consumption, Saving, Investment, and Unemployment. SVAR Tests of the Effects of Changes in the Consumption-Saving Pattern," Documentos de trabajo - Analise Economica 0045, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    • Handle: RePEc:edg:anecon:0045
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    References listed on IDEAS

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    Cited by:

    1. Roberto Bande & Dolores Riveiro, 2013. "Private Saving Rates and Macroeconomic Uncertainty: Evidence from Spanish Regional Data," The Economic and Social Review, Economic and Social Studies, vol. 44(3), pages 323-349.

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