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

Aleksandar Vasilev

EconStor Open Access Articles and Book Chapters, 2015, vol. 18, issue 1, 81-89

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; Permanent Income Hypothesis; Error Correction Model (search for similar items in EconPapers)
JEL-codes: E21 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/142146/1/1 ... 1_05_paper_ZIREB.pdf (application/pdf)

Related works:
Journal Article: Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005) (2015)
Working Paper: Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005) (2015)
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:zbw:espost:142146

DOI: 10.1515/zireb-2015-0005

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().