Short-Run and Long-Run Co-Movements in the Income-Consumption Relationship
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Date
2018-04
Journal Title
Journal ISSN
Volume Title
Publisher
Scientific Research
Abstract
The study uses the cointegration and common cycle analysis to test whether
there are short-run and long-run co-movement relationships between incomes
and varies consumption expenditure variables. The analysis aims to
detect the long-run co-movements between income and five types of consumption
variables, which provides supporting evidence for the common
brief that income drives consumption in the long-run. In addition, the analysis
also attempts to detect if there are short-run co-movements between income
and consumption.
Description
Keywords
Common Cycles, Common Features, Cointegration, Consumers’ Expenditure
Citation
Theoretical Economics Letters, 2018, 8, 814-819