Explaining Consumption: A Simple Test of Alternative Hypotheses

IMF Working Paper No. 97/56

Posted: 22 May 1998

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: 1997

Abstract

A method of testing the relative importance for consumption of risk sharing behavior and changes in current income is proposed and estimated using data across Canadian provinces. The focus of the estimation is less on whether or not the risk sharing model can be rejected than on how much each of these hypotheses can contribute to explaining overall variation in consumption.

JEL Classification: D12, E21

Suggested Citation

Bayoumi, Tamim, Explaining Consumption: A Simple Test of Alternative Hypotheses (1997). IMF Working Paper No. 97/56. Available at SSRN: https://ssrn.com/abstract=91128

Tamim Bayoumi (Contact Author)

International Monetary Fund (IMF) ( email )

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Washington, DC 20431
United States
202-623-6333 (Phone)
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

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