Wealth Allocation, Capital Gains and Private Expenditure in the UK

Hassan Molana

Scottish Journal of Political Economy, 1989, vol. 36, issue 3, 209-37

Abstract: The end of the period stock of net wealth is usually thought to be important for agents' flow-of-funds decisions. Its relevance for modeling the aggregate consumption function is mainly due to two factors: (1) the choice between consumption and accumulation, and (2) the capital gains from accumulation. This paper specifies a dynamic empirical relationship that takes account of these factors. The variables in the author's data set are those that previous studies have found to be theoretically most relevant but have, one way or another, failed to incorporate them empirically. The suggested model, therefore, can be seen as a generalization of the existing ones; in addition to personal disposable income, it introduces personal wealth, its relative price, and rate of return as determinants of the expenditure on nondurable goods and services. The U.K. evidence supports this generalization. Copyright 1989 by Scottish Economic Society.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:bla:scotjp:v:36:y:1989:i:3:p:209-37

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().