Vasilev, Aleksandar (2015) Modeling Real Private Consumption Expenditure in Bulgaria after the Currency Board Implementation (1997-2005). Zagreb International Review of Economics & Business, 18 (1). pp. 81-89. ISSN 1331-5609
Full content URL: https://doi.org/10.1515/zireb-2015-0005
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| Item Type: | Article |
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| Item Status: | Live Archive |
Abstract
In this paper, an econometric model of consumption in Bulgaria for the period 1997-2005 is constructed. The Error-Correction Model (ECM) approach is employed and long-run relationship between household consumption and income was found. The primary purpose of this empirical paper is to get a better understanding of the factors driving household consumption in Bulgaria and to estimate a consumption function to be used for medium-term forecasting. It is shown that all households behave in a Keynesian way, basing their consumption decisions on current income.
| Keywords: | Keynesian consumption function, Permanent Income Hypothesis, Error Correction Model |
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| Subjects: | L Social studies > L140 Econometrics L Social studies > L130 Macroeconomics |
| Divisions: | Lincoln International Business School |
| ID Code: | 34018 |
| Deposited On: | 22 Nov 2018 16:37 |
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