The Wealth Effect in Empirical Life-Cycle Aggregate Consumption Equations.(Statistical Data Included)
From: Economic Quarterly
|
Date: 3/22/2001
|
Author: Mehra, Yash P.
This article presents an empirical model of U.S. consumer spending that relates consumption to labor income and household wealth. This specification is consistent with the life-cycle hypothesis of saving first popularized in the 1960s by Ando, Modigliani, and their cohorts. [1] My analysis here extends the previous research in several directions. First, I examine the dynamic relationship between consumption, income, and wealth using cointegration and error correction methodology. In ...
COPYRIGHT 2001 Federal Reserve Bank of Richmond
This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
For permission to reuse this article, contact Copyright Clearance Center.