The Estimation of a Data-based Consumption Function for Nondurable Consumer Goods and Services

Gerhard Thury and Michael Wüger
Additional contact information
Gerhard Thury: WIFO
Michael Wüger: WIFO
Authors registered in the RePEc Author Service: Michael Wueger

WIFO Monatsberichte (monthly reports), 1994, vol. 67, issue 12, pages 680-688

Abstract: In the recent past, more and more economists have raised the question whether theoretical assumptions made in applied economics correspond to reality. This paper estimates a consumption function for nondurable consumer goods and services which best utilizes the information contained in the data. The function satisfies high statistical standards and has a sound theoretical basis as well. Short-run dynamics are modeled together with long-run equilibrium behavior. The results show that short-run responses to changes in the determinants (income, prices) are smaller than those in the long run because consumers adapt their behavior to changes in the environment if these changes are viewed as permanent. This produces the stabilizing effect of consumption over the business cycle.

Keywords: Schätzung einer datenkonformen Konsumfunktion für nichtdauerhafte Konsumgüter und Dienstleistungen; The Estimation of a Data-based Consumption Function for Nondurable Consumer Goods and Services (search for similar items in EconPapers)
Date: 1994

Downloads: (external link)
http://www.wifo.ac.at/wwa/jsp/index.jsp?fid=23923& ... anguage=2&language=2 Abstract (text/html)
Payment required

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wfo:monber:y:1994:i:12:p:680-688

Ordering information: This journal article can be ordered from
Austrian Institute of Economic Research c/o Christine Kautz P.O. Box 91 A-1103 Vienna/Austria

Access Statistics for this article

More articles in WIFO Monatsberichte (monthly reports) from WIFO
Contact information at EDIRC.
Series data maintained by Ilse Schulz ().