 THE ECONOMETRICS OF MACROECONOMIC MODELLING

# The aggregate consumption function

The model for aggregate consumption in B&N satisfies the criteria we listed in Section 2.3. They provide a model in which cointegration analysis establishes that the linear relationship

cht = constant + 0.56yht + 0.27wht, (2.6)

is a cointegrating relationship and that the cointegration rank is one. Hence, while the individual variables in (2.6) are assumed to be non-stationary and integrated, the linear combination of the three variables is stationary with a constant mean showing the discrepancy between consumption and its long-run equilibrium level 0.56yht +0.27wht. Moreover, income and wealth are weakly exogenous for the cointegration parameters. Hence, the equilibrium correction model for Acht satisfies the requirements of valid conditioning. Finally, the coin­tegration parameters appears to be invariant. The estimated marginal models for income and wealth show evidence of structural breaks. The joint occurrence of a stable conditional model (the consumption function) and unstable marginal models for the conditional variables is evidence of within sample invariance of the coefficients of the conditional model and hence super exogenous condi­tional variables (income and wealth). The result of invariance is corroborated by Jansen and Terasvirta (1996), using an alternative method based on smooth transition models.

The empirical consumption function in B&N has proven to be relatively stable for more than a decade, in particular this applies to the cointegration part of the equation. Thus, it is of particular interest to compare it with rival models in the literature.

Добавить комментарий

## THE ECONOMETRICS OF MACROECONOMIC MODELLING

### Inflation equations derived from the P*-model

The P*-model is presented in Section 8.5.4. The basic variables of the model are calculated in much the same way for Norway as for the Euro area in the previous …

### Forecast comparisons

Both models condition upon the rate of unemployment ut, average labour productivity at, import prices pit, and GDP mainland output yt. In order to investigate the dynamic forecasting properties we …

### The NPCM in Norway

Consider the NPCM (with forward term only) estimated on quarterly Norwegian data: Apt = 1.06 Apt+1 + 0.01 wst + 0.04 Apit + dummies (7.21) (0.11) (0.02) (0.02) x2(10) = …

## Как с нами связаться:

Украина:
г.Александрия
тел./факс +38 05235  77193 Бухгалтерия
+38 050 512 11 94 — гл. инженер-менеджер (продажи всего оборудования)

+38 050 457 13 30 — Рашид - продажи новинок
e-mail: msd@msd.com.ua
Схема проезда к производственному офису:
Схема проезда к МСД

Партнеры МСД

## Контакты для заказов шлакоблочного оборудования:

+38 096 992 9559 Инна (вайбер, вацап, телеграм)
Эл. почта: inna@msd.com.ua

За услуги или товары возможен прием платежей Онпай: Платежи ОнПай