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Expenditure allocation across nondurables, services, durables and savings: An empirical study of separability in the long run
Author(s) -
Anderson G. J.
Publication year - 1991
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950060205
Subject(s) - consumption (sociology) , economics , context (archaeology) , aggregate (composite) , econometrics , short run , microeconomics , sociology , biology , paleontology , social science , materials science , composite material
The separability of categories of consumption expenditures and savings are empirically examined in the context of an error‐correction model of aggregate quarterly expenditure allocations in Canada. Some evidence is found for separability of consumption allocations from savings in both the long run structure and short run dynamics of the model lending some support to the use of the assumption in modelling consumption behaviour.