EconPapers    
Economics at your fingertips  
 

Wealth and Consumption. A Multicointegrated Model for the Unified Germany / Vermögen und Konsum. Ein multikointegriertes Modell für das vereinigte Deutschland

Uwe Hassler

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2001, vol. 221, issue 1, 32-44

Abstract: In a multicointegrated consumption function, consumption is explained by income and wealth, where wealth is measured as cumulated saving. This implies that income and wealth are cointegrated, and their impact on consumption cannot be estimated from a static cointegrating regression. It is proposed to estimate the parameters of an error-correction equation instead, and to solve it for the equilibrium relationship in levels. Then long-run multipliers of income and wealth can be computed. This technique is applied to German series with data for the unified Germany after 1990. The multicointegrated life cycle hypothesis is supported by the data.

Keywords: Saving; life cycle hypothesis; error-correction; long-run multipliers (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/jbnst.2001.221.is ... -0104.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is 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: https://EconPapers.repec.org/RePEc:jns:jbstat:v:221:y:2001:i:1:p:32-44

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/jbnst

Access Statistics for this article

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by Peter Winker

More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2020-03-29
Handle: RePEc:jns:jbstat:v:221:y:2001:i:1:p:32-44