Latest documents http://publikationen.ub.uni-frankfurt.de/index/index/ Tue, 04 Nov 2008 11:08:38 +0200 Tue, 04 Nov 2008 11:08:38 +0200 http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/92 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. JEL Classification: E21, F41 Christopher D. Carroll; Jirka Slacalek; Martin Sommer workingpaper http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/92 Fri, 11 Apr 2008 11:08:38 +0200