Interrelations between consumption and wealth in Poland

Magdalena Zachłod-Jelec ()

No 3, MF Working Papers from Ministry of Finance in Poland

Abstract: This paper studies the long-run relationship between consumption, labour income and asset wealth in Poland. Within cointegrated VAR model dynamic responses of the variables in the system to shocks are studied. In addition series are decomposed into permanent and transitory components. Main conclusion of this paper is that deviations of the three variables from their estimated long-run relationship are better explained with fluctuations of labour income than assets. The paper offers a tentative explanation of this finding. Additionally, the magnitude of the asset wealth effect in Poland is calculated and compared with other studies for European countries and for the U.S.

Keywords: wealth; cointegration; Beveridge-Nelson decomposition; impulse responses (search for similar items in EconPapers)
JEL-codes: C32 E21 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2010-01-07, Revised 2010-01-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Interrelations between Consumption and Wealth in Poland (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:mfplwp:0003

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