International evidence on sticky consumption growth
- We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky-consumption-growth model outperforms the random walk model of Hall (1978), and typically fits the data better than the popular Campbell and Mankiw (1989) model. In several countries, the sticky-consumption-growth and Campbell-Mankiw models work about equally well.
Author: | Christopher D. Carroll, Jirka Slacalek, Martin Sommer |
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URN: | urn:nbn:de:hebis:30-54376 |
URL: | http://www.ifk-cfs.de/fileadmin/downloads/publications/wp/08_09.pdf |
Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,09 |
Series (Serial Number): | CFS working paper series (2008, 09) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2008 |
Year of first Publication: | 2008 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2008/04/11 |
Tag: | consumption dynamics; habit formation; sticky expectations |
GND Keyword: | Privater Verbrauch |
HeBIS-PPN: | 197750494 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |