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Does The Keynesian Absolute Income Hypothesis Exist in Pakistan?

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  • Shahbaz, Muhammad
  • Nawaz, Kishwer
  • AROURI, Mohamed El Hedi
  • Teulon, Frédéric

Abstract

The present paper contributes in existing economic literature by investigating the validation of the Keynesian Absolute Income hypothesis in Pakistan by applying the ARDL approach to cointegration. The findings of this paper indicate the validation of the Keynesian absolute income hypothesis in Pakistan, where public savings and financial development add in private savings. This study opens up new insights for government to improve the level of private savings.

Suggested Citation

  • Shahbaz, Muhammad & Nawaz, Kishwer & AROURI, Mohamed El Hedi & Teulon, Frédéric, 2013. "Does The Keynesian Absolute Income Hypothesis Exist in Pakistan?," MPRA Paper 47923, University Library of Munich, Germany, revised 01 Jul 2013.
    • Handle: RePEc:pra:mprapa:47923
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    More about this item

    Keywords

    Private savings; Co-integration; Pakistan;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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