Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005)

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: In this paper, an econometric model of consumption in Bulgaria for the period 1997-2005 is constructed. The Error-Correction Model (ECM) approach is employed and long-run relationship between household consumption and income was found. The primary purpose of this empirical paper is to get a better understanding of the factors driving household consumption in Bulgaria and to estimate a consumption function to be used for medium-term forecasting. It is shown that all households behave in a Keynesian way, basing their consumption decisions on current income.

Keywords: Keynesian consumption function; Error-correction model (search for similar items in EconPapers)
JEL-codes: E21 E27 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ger and nep-mac
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Citations: View citations in EconPapers (6)

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https://www.econstor.eu/bitstream/10419/142469/1/BG_cons_function_submission.pdf (application/pdf)

Related works:
Journal Article: Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005) (2015)
Journal Article: Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005) (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:142469

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